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FXall bridges its connectivity to LCH to expand FX OTC access



Refinitiv FXall has recently announced its plans to expand FX traders’ access to FX OTC cleared workflows when it comes to trading by bridging its connectivity to LCH. The new solution will provide FXall users with a far more streamlined and swifter method of clearing NDF trades via LCH’s already established ForexClear service. Dependent on approval from regulators, the new solution is due to go live during Q4 of 2021.

Jill Sigelbaum, Head of FXall, said:

Jill Sigelbaum, Refinitiv
Jill Sigelbaum
Source: LinkedIn

This initiative brings together the services of two well-established brands that deliver on that commitment, while empowering institutions minimize counterparty credit risk and achieve capital efficiency opportunities.

In anticipation of Phase 5 of the Uncleared Margin Rules (UMR) set to be implemented in September 2021, buy-side institutions are now working to assess just how they may be affected by the changes. This reflection requires them to weigh up the benefits surrounding FX clearing. Institutions are also now analysing the operational challenges and costs which often correlate with new margin conditions regarding uncleared trades, meaning that they may opt to instead decide to remove segments of their FX flow.

Refinitiv

Any institutional traders who utilise FXall will have the ability to ascertain exactly which of their trades should be cleared, a decision which could be determined by the currency pair, the account they are trading for, or even the liquidity provider. Trades are designed to be routed through to LCH via FXall’s post-trade processing platform, Settlement Center. For subsequent releases, FXall will then support cleared workflows for any further Refinitiv venues and instrument types alongside any supplementary clearing houses.

James Pearson, Head of ForexClear, LCH, said:

We’re delighted to be working with FXall to connect with LCH. This initiative will expand the choice of trading venues available to buy-side firms that wish to access the risk management and efficiency benefits of clearing.

ForexClear helps its clients to meet their everyday clearing needs, while simultaneously taking advantage of LCH’s  default management and risk solutions. Multi-dealer FX trading platform, FXall, works to provide its clients with access to deep liquidity, and boasts a client base of more than 2,300, as well as 230 bank and non-bank liquidity providers.

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FXall bridges its connectivity to LCH to expand FX OTC access

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