LCH ForexClear non-deliverable FX options clearing goes live

LCH has successfully launched non-deliverable FX options clearing across nine currency pairs. The go-live of non-deliverable FX options clearing builds on LCH ForexClear’s existing offering, complementing clearing of...

January, 2021

Paddy Boyle

LCH has successfully launched non-deliverable FX options clearing across nine currency pairs. The go-live of non-deliverable FX options clearing builds on LCH ForexClear’s existing offering, complementing clearing of non-deliverable FX forwards, deliverable FX options and deliverable FX forwards. Clearing the new product creates further opportunities for clearing members and their clients to achieve operational and capital efficiences through portfolio netting with products already cleared at LCH ForexClear. Clearing of non-deliverable FX options also supports market participants that are required to post initial margin (IM) under the Uncleared Margin Rules (UMR), potentially reducing their costs. Paddy Boyle, Head of ForexClear, LCH said: “We are delighted to have launched non-deliverable FX options clearing at LCH, complementing our strong existing offering. By clearing this product, market participants can access significant operational and capital efficiencies as well as benefiting from the robust risk management associated with clearing.”