Wells Fargo joins LCH ForexClear as clearing member
17 July 2024 UK
Image: adam121/stock.adobe.com
US-based bank Wells Fargo has joined LCH ForexClear, a London Stock Exchange Group business, as a clearing member and has processed its first non-deliverable forward (NDF) trade through the service.
LCH ForexClear has experienced strong growth across the service in 2024, with NDF average daily volume (ADV) of US$132 billion cleared in June 2024, a 33 per cent increase year-over-year (YoY).
FX Options ADV at ForexClear increased by 126 per cent YoY in the same month, to US$22 billion, with a record day of US$48 billion registered on 27 June 2024.
Wells Fargo is now able to benefit from ForexClear’s offering, including comprehensive margin, liquidity and netting opportunities.
Andrew Batchelor, head of LCH ForexClear, says: “We are delighted to welcome Wells Fargo as our latest member, as we continue to expand our offering to financial institutions globally, following the addition of two new members from Asia and Europe in 2023.”
Vincent Hindman, head of foreign exchange at Wells Fargo, adds: “Given the strategic growth of our FX platform over the last few years, it was important to unlock the margin and capital efficiencies provided through ForexClear.
“As more interbank and client volume continues to migrate towards NDF clearing, this will allow us to further mitigate counterparty credit risk and lower costs through multilateral risk netting.”
LCH ForexClear has experienced strong growth across the service in 2024, with NDF average daily volume (ADV) of US$132 billion cleared in June 2024, a 33 per cent increase year-over-year (YoY).
FX Options ADV at ForexClear increased by 126 per cent YoY in the same month, to US$22 billion, with a record day of US$48 billion registered on 27 June 2024.
Wells Fargo is now able to benefit from ForexClear’s offering, including comprehensive margin, liquidity and netting opportunities.
Andrew Batchelor, head of LCH ForexClear, says: “We are delighted to welcome Wells Fargo as our latest member, as we continue to expand our offering to financial institutions globally, following the addition of two new members from Asia and Europe in 2023.”
Vincent Hindman, head of foreign exchange at Wells Fargo, adds: “Given the strategic growth of our FX platform over the last few years, it was important to unlock the margin and capital efficiencies provided through ForexClear.
“As more interbank and client volume continues to migrate towards NDF clearing, this will allow us to further mitigate counterparty credit risk and lower costs through multilateral risk netting.”
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