LCH expands deliverable FX offering
- FX forwards now available for clearing at LCH; first CCP to clear the product
- Utilises settlement model developed in collaboration with CLS
- ForexClear expansion builds on existing clearing service for FX non-deliverable forwards and deliverable options
LCH, a leading global clearing house, today announced that it has expanded its deliverable FX offering to include FX forwards. Members of the ForexClear service are now able to clear this product in eight currency pairs.
The product extension builds on the launch of deliverable FX options clearing in 2018, in line with customer demand. The addition of FX Forwards to the deliverable clearing service at LCH represents a significant expansion of the universe of FX derivatives now available for clearing. The product incorporates the first physical FX settlement service for cleared FX products, which LCH developed in collaboration with CLS.
Paddy Boyle, Head of ForexClear, LCH, said: “Making FX Forwards available for clearing is a significant moment for the market. This initiative substantially broadens the proportion of the FX market which is able to be cleared. As a result, we’re pleased to be bringing the risk management and efficiency benefits of clearing to an even larger segment of the market.”
Tom Prickett, co-head of EMEA Rates, J.P. Morgan: “The launch of cleared FX Forwards unlocks more opportunities for improved risk management and operational efficiencies. It’s always beneficial for the dealer community to have choice and today’s announcement is an exciting step for the advancement of the FX forward market.”
LCH is clearing FX Forwards on eight currency pairs: AUDUSD, EURUSD, GBPUSD, USDJPY, USDCHF, EURJPY, EURCHF, EURGBP with physical delivery. This is in addition to its existing deliverable options clearing service. ForexClear plans to add further FX products to its service in line with demand, and subject to regulatory approval.
For further information
Rhiannon Davies, Tel: +44 (0)20 7426 7523
Lucie Holloway, Tel: +44 (0)20 7797 1126
LCH is a group of leading multi-asset clearing houses that provides proven risk management capabilities across a range of asset classes. As demand for robust clearing services continues to grow, LCH is committed to maintaining the highest standards of risk management across all our services.
As the markets’ partner, LCH operates an open access model, offering a choice of execution venues, delivering unprecedented choice and efficiencies to the marketplace.
LCH operates clearing houses around the world, with clearing houses incorporated in the UK, France and the United States with additional offices in the Asia Pacific region. It offers clearing services across asset classes including OTC and listed rates; CDS and FX; fixed income; commodities; cash equities and equity derivatives. LCH also serves the non-cleared derivatives market through LCH SwapAgent, a new service which extends the efficiencies and infrastructure of clearing to the market, without acting as a central counterparty.
LCH is majority owned by London Stock Exchange Group (LSE.L), an international markets infrastructure business that sits at the heart of the world's financial community.
Further information on LCH can be found at www.lch.com