LCH.Clearnet launches buy-side clearing of FX derivatives

The new service will initially offer FX NDFs out to two years for buy-side clients, via three FCMs.

Clearing specialist LCH.Clearnet announced today that it is expanding its ForexClear FX derivatives clearing service with the launch of a new offering for buy-side clients.

ForexClear is now available to buy-side clients through one of three Futures Commission Merchants (FCMs) connected to the service — Deutsche Bank, JP Morgan and Morgan Stanley. More FCMs are expected to be added in the coming months.

The new service will initially offer FX non-deliverable forwards (NDFs) out to two years, with plans to extend the product range in 2014. ForexClear today clears the majority of the dealer-to-dealer market with over $1.2 trillion in over 100,000 tickets cleared since the service was launched in March 2012.

Gavin Wells, CEO of ForexClear, said “Our experience with interest rate swaps taught us that clients who prepare in advance receive the most support and can position themselves a step ahead of the regulatory process. Early adoption will help ensure all participants benefit from a more resilient, robust OTC FX infrastructure. Looking ahead, we recognize that choice and liquidity are key considerations for clients and members alike and intend to further expand the service’s clearable product range, in line with demand.”

Major changes have been underway of late at LCH. Last month they announced the appointment of a new CEO, ex Citi exec Suneel Bakhshi. LCH also announced a partnership with Cantor Fitzgerald to launch the first European centrally cleared over the counter CFD trading mechanism.

To see the complete LCH.Clearnet press release click here.

For more on the global Forex industry see the LeapRate-Dow Jones Forex Industry Report.

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