LCH.Clearnet to clear FX and OTC FX Options in late 2011

LCH.Clearnet is a leading independent clearing house group, serving major international exchanges and platforms, as well as a range of OTC markets. It clears a broad range of asset classes including: securities, exchange traded derivatives, commodities, energy, freight, interest rate swaps, credit default swaps and euro and sterling denominated bonds and repos; and works closely with market participants and exchanges to identify and develop clearing services for new asset classes.

LCH.Clearnet is becoming quite popular in Europe and is now eyeing additional markets as well as instruments. In its latest 2010 financial report a short but interesting statement can be found: "The Group also invested in its foreign exchange clearing service during the year and is on track to launch clearing for OTC foreign exchange options in late 2011."

It would be interesting to see LCH's business model in FX clearing and with whom it is going to work. One potential huge collaboration I can envision is LCH partnering with the ambitious Pure FX project. Unfortunately, Pure FX a promising Forex trading venue for banks, is all but dead now.