– SDR reporting for cleared FX trades now live
LCH.Clearnet Ltd (LCH.Clearnet), the multi-national clearing house’s UK-based CCP, has cleared more than $500 billion in notional of FX NDFs through its ForexClear service since launch in March 2012. The volumes were driven by record figures of $207 billion in the fourth quarter.
The success of ForexClear has been fuelled by increased demand for robust clearing solutions as leading FX market participants seek to manage their counterparty risk exposures. 14 members benefit from ForexClear’s world-class risk management framework and broad offering of 11 currencies.
The service was designed in close collaboration with leading FX market participants and global regulators to address regulatory developments every step of the way. In a market first, LCH.Clearnet recently began reporting cleared FX trades to a swap data repository (SDR) run by the Depository Trust and Clearing Corporation (DTCC).
The move is in line with the Commodity Futures Trading Commission’s (CFTC) regulation to mandate the reporting and recordkeeping of all FX trades, except spot, through a registered SDR. ForexClear facilitates market transparency by submitting all data throughout the life of a cleared FX trade to the SDR within seconds of novation.
Gavin Wells, CEO, ForexClear said: “The strong growth in volumes cleared through ForexClear indicates that FX participants have full confidence in our offering and we are very proud of the outstanding progress made since launch just 11 months ago. Furthermore, we remain fully committed to supporting the ambitions of global regulators, as demonstrated by our timely delivery of reliable and comprehensive FX data reporting.”
ForexClear’s client clearing business, which has now received regulatory approval, is set to launch shortly in line with member and client demand. This service enhancement enables clients to meet regulatory obligations whilst giving them the benefits of quality risk management and superior protection through segregation of margin collateral.
