LCH's FX options clearing service will aim to reduce settlement and counterparty risk
LCH has implemented a new service geared towards augmenting clearing across a wider range of products and participants in the foreign Exchange market. This effort has culminated in the launch of deliverable FX options clearing, which has already drawn support from leading banks to adopt the service.
The new offering incorporates the first physical FX settlement service for cleared FX products. Developed in partnership with CLS, the comprehensive effort is looking to improve the broader industry. As such, the new FX options clearing service will aim to reduce settlement and counterparty risk while improving efficiencies for those operating in the OTC cleared FX market.
Paddy Boyle, Global Head of ForexClear, LCH, commented on the launch: “Clearing FX Options is an exciting milestone for LCH and the FX market. The launch of this service extends the benefits of clearing to more products and participants in the FX market, enabling them to benefit from the Risk Management, margin, capital and operational efficiencies of clearing. We’re delighted to partner with CLS to deliver this innovative new service.”
As a leading global clearinghouse, LCH’s new service has also attracted multiple banks, including Barclays, Citi, and JPMorgan, with others expected to start clearing the product in H2 2018. At present, clearing FX Options extends LCH’s ForexClear service, which is a major market clearer of FX NDFs, estimated at approximately $70 billion in average daily volume.
This stance was reiterated by Alan Marquard, Chief Strategy and Development Officer, CLS, who commented: “This initiative marks a significant step forward for the global FX community. By working with LCH, we will reduce settlement and counterparty risk while improving efficiencies for those operating in the OTC cleared FX market.”
“The strong benefit of clearing deliverable FX Options has been apparent since the introduction of the uncleared margin rules in 2016. LCH has overcome enormous complexity in development of the product through innovative thinking and strong partnerships with CLS and members. We are delighted to be a part of the launch of this ground-breaking solution for the broader market,” explained Andrew Batchelor, MD, Global FX Business Manager, Barclays.
LCH’s service supports physical delivery, as well as spot and forward hedges. ForexClear is also laying out plans to add further FX products to its service in line with demand, and subject to regulatory approval. LCH is presently clearing FX Options across eight currency pairs. This includes the following:
AUDUSD
EURUSD
GBPUSD
USDJPY
USDCHF
EURJPY
EURCHF
EURGBP
"The launch of FX Options clearing capabilities unlocks significant new opportunities for market participants by enabling operational efficiency while optimizing risk management. We are pleased to work with LCH and CLS to extend the benefits of this initiative to our clients and look forward to seeing widespread market adoption of this new service,” added Mike Lawrence, Citi's Global Chief Administrative Officer for Foreign Exchange and Local Markets.
LCH has implemented a new service geared towards augmenting clearing across a wider range of products and participants in the foreign Exchange market. This effort has culminated in the launch of deliverable FX options clearing, which has already drawn support from leading banks to adopt the service.
The new offering incorporates the first physical FX settlement service for cleared FX products. Developed in partnership with CLS, the comprehensive effort is looking to improve the broader industry. As such, the new FX options clearing service will aim to reduce settlement and counterparty risk while improving efficiencies for those operating in the OTC cleared FX market.
Paddy Boyle, Global Head of ForexClear, LCH, commented on the launch: “Clearing FX Options is an exciting milestone for LCH and the FX market. The launch of this service extends the benefits of clearing to more products and participants in the FX market, enabling them to benefit from the Risk Management, margin, capital and operational efficiencies of clearing. We’re delighted to partner with CLS to deliver this innovative new service.”
As a leading global clearinghouse, LCH’s new service has also attracted multiple banks, including Barclays, Citi, and JPMorgan, with others expected to start clearing the product in H2 2018. At present, clearing FX Options extends LCH’s ForexClear service, which is a major market clearer of FX NDFs, estimated at approximately $70 billion in average daily volume.
This stance was reiterated by Alan Marquard, Chief Strategy and Development Officer, CLS, who commented: “This initiative marks a significant step forward for the global FX community. By working with LCH, we will reduce settlement and counterparty risk while improving efficiencies for those operating in the OTC cleared FX market.”
“The strong benefit of clearing deliverable FX Options has been apparent since the introduction of the uncleared margin rules in 2016. LCH has overcome enormous complexity in development of the product through innovative thinking and strong partnerships with CLS and members. We are delighted to be a part of the launch of this ground-breaking solution for the broader market,” explained Andrew Batchelor, MD, Global FX Business Manager, Barclays.
LCH’s service supports physical delivery, as well as spot and forward hedges. ForexClear is also laying out plans to add further FX products to its service in line with demand, and subject to regulatory approval. LCH is presently clearing FX Options across eight currency pairs. This includes the following:
AUDUSD
EURUSD
GBPUSD
USDJPY
USDCHF
EURJPY
EURCHF
EURGBP
"The launch of FX Options clearing capabilities unlocks significant new opportunities for market participants by enabling operational efficiency while optimizing risk management. We are pleased to work with LCH and CLS to extend the benefits of this initiative to our clients and look forward to seeing widespread market adoption of this new service,” added Mike Lawrence, Citi's Global Chief Administrative Officer for Foreign Exchange and Local Markets.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
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FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
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Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Finance Magnates Annual Awards 2024 | FM Awards 2024 Highlights
Finance Magnates Annual Awards 2024 | FM Awards 2024 Highlights
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🎥Catch the best moments from the Finance Magnates Annual Awards Gala Dinner!
An evening where top names in finance came together to celebrate achievements, enjoy live music, and connect over a memorable dinner. Watch the highlights and feel the energy of our first gala in Cyprus!
Congratulations to all the winners for their dedication to excellence and leadership in the financial industry, including XM, Trading PRO, FP Markets, Deriv, FxPro, LATAM, Headway, ATFX, FBS, AMEGA, EC Markets, Axi
For more information about the 1st Finance Magnates Annual Awards, visit https://bit.ly/3Zb7wNz
#FinanceMagnatesGala #IndustryExcellence #GalaHighlights #FinanceMagnatesAnnualAwards #FinanceMagnatesAwards #CelebratingSuccess #FinanceCommunity
FMLS:24 | Shaping the Next Era of Financial Evolution
FMLS:24 | Shaping the Next Era of Financial Evolution
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Join over 2,500 industry professionals, engage with 150+ expert speakers, and discover endless opportunities with 70+ top exhibitors. FMLS:24 is where senior executives and decision-makers gather to close deals, forge new partnerships, and strengthen connections with long-term clients.
Whether you’re in finance, technology, or payments, this summit is your gateway to future growth, meaningful collaborations, and industry-leading insights.
👉 Don't miss out – secure your ticket now at https://events.financemagnates.com/ZQEYy0?utm_source=youtube&utm_campaign=fmls24-awareness&utm_medium=video&RefId=MLS%3A24+Video+Promo
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