Clearing your NDF trades with ForexClear could not be simpler. Discover the first steps to get started
Unsure about how an OTC FX instrument can be converted into a cleared position? The process begins in exactly the same way you would execute a bilateral FX trade today.
NDFs are negotiated and traded bilaterally between parties. Counterparties can then independently submit their trade side to be matched at a middleware provider or, if executed on a trading venue which is directly connected to LCH, the venue will match and submit the trade directly to LCH on your behalf.
Once received and novated, notification of trade status updates are relayed from ForexClear to members via the middleware provider or venue. Counterparties can also be sent direct notification of clearing acceptance via the ForexClear API.
Once both legs of the trade are facing LCH, we calculate margin requirements for counterparties on an intraday basis and we undertake the fixing and settlement of trades on maturity.
Our members and clients can register trades 24 hours a day, 5.5 days a week.
Once we receive a cleared transaction, assuming sufficient collateral has been posted, trades are registered at LCH within 60 seconds, or 10 seconds for trades executed on a swap execution facility.
The transfer of cash collateral, trade settlement and any other cash transactions associated with ForexClear are facilitated by LCH’s Protected Payments System (PPS), a direct debit arrangement under which participating banks commit to meet cash calls following instructions from LCH.
ForexClear transactions must be submitted to LCH for clearing via an Approved Trade Source System (as defined in the applicable LCH rulebook).
Below is a list of Approved Trade Source Systems for ForexClear:
- Bloomberg Global Ltd*
- SwapEX LLC
ForexClear is able to receive matched trades from a number of execution venues, including swap execution facilities and derivatives contract markets. These execution venues may connect via ForexClear's proprietary direct connectivity platform as an Approved Trade Source System, or connect indirectly via a middleware provider that is an Approved Trade Source System.