Clearing and settlement
Confirmation of US Treasury FX exemption brings relief to dealers
After two years of consideration, the US Treasury confirmed its decision to exempt FX swaps and forwards from mandatory clearing and exchange trading on Friday evening
No need to panic about collateral supply, says Bank of England
Isda estimates that mandatory clearing and margin could require the posting of up to $30 trillion of initial margin have been inflated, not least because of a likely exemption for FX swaps and forwards, according to a senior BoE official
Buy side weighs risk mitigation against clearing costs
Buy-side firms look certain to bear some of the costs that result from mandatory central clearing, with some suggesting they might look to clear non-mandated products, were it not for the prohibitive costs
Banks face up to fragmented clearing landscape in Asia
In preparing for mandatory clearing, the priority is to ensure all CCPs across Asia adhere to the same set of standards, says Deutsche's David Lynne
LCH.Clearnet approved for five new currencies on ForexClear
LCH's new FX clearing service now offers clearing in 11 currencies, accounting for 95% of the global NDF market
ABN Amro hires Duff to build FX clearing business
Dutch bank hires industry veteran to launch clearing business in North America
Interdealer brokers pick MarkitServ for FX processing
BGC Partners, GFI Group, Tradition and Tullett Prebon have all chosen middleware provider MarkitServ to facilitate connectivity to CCPs and trade repositories, and voice affirmations
LCH readies launch of new NDF pairs and client clearing
Five months after launch, ForexClear is ready to start offering client clearing and to add five new currencies to the service, pending the approval of the FSA and the CFTC
Pressure mounts on Esma over clearing exemption
Responses to Esma's draft technical standard on Emir call for the agency to clarify its position on FX clearing - with some suggestion NDFs could be exempt
Central banks working on liquidity support for CCPs, says BoE’s Tucker
International regulators and central banks trying to avoid "nightmare" of fragmented clearing system
FX market a challenge for CCPs, says New York Fed official
Central counterparties might struggle to implement clearing solutions for the FX market, says Jeanmarie Davis
CME client clearing hits two more currencies
Following the clearing of the first NDF trade through CME Group in late April, the exchange has cleared client trades denominated in Chinese renminbi and the Philippine peso over the past month
FX Week China: Post-trade forex utilities are crucial in crisis times
CLS and FX clearing platforms are becoming a crucial part of the FX market, but they will need to co-operate closely in future, say FX Week China speakers
CCP resolution plans start to take shape
LCH.Clearnet's re-launched CDS clearing service adopts a loss-sharing mechanism - in line with a "last gasp of breath" approach outlined in an Isda letter to the Bank of England
BM&F Bovespa plans to integrate clearing houses
Plan to combine four clearing houses into one will result in margin efficiencies of 30-40%, the exchange estimates
All FX derivatives will be cleared by 2014, say CCPs
Senior FX clearing officials expect strong demand to clear the full FX derivatives product set - within two years
CME kicks off client clearing ahead of competitors
CME stole a march on rivals when it cleared its first NDF last week, as the Brazilian real contract was a client trade
US Treasury’s FX exemption hangs in the balance
A year after the US Treasury's proposed regulatory exemption for FX swaps and forwards, the position has never been confirmed - and some believe it may be reconsidered
Brakes remain on FX options clearing, despite regulatory easing
CPSS-Iosco working group ruled last week that CCPs do not have to guarantee settlement, but participants recognise the issue still has some way to run before options can be centrally cleared
Credit where it's due
The launch of NDF clearing by LCH.Clearnet marks a major development for the FX market that will ultimately change the shape of the post-trade landscape
Canada clearing paper will not address CCP location question
A consultation on OTC clearing is expected in the coming months, but a key question will not be answered
LCH’s ForexClear gets off to a solid start in NDFs
The launch of clearing of non-deliverable forwards on LCH.Clearnet's new ForexClear platform went smoothly last week, according to participants
Spotlight on: Gavin Wells, LCH.Clearnet
The chief executive of LCH.Clearnet’s newly launched ForexClear talks to Joel Clark about the development of the platform, and his plans to expand to client clearing and new currencies later this year
Esma must replicate US Treasury’s FX exemption, says EC official
Patrick Pearson, head of the European Commission unit that drafted Emir, says FX swaps and forwards must be exempt from clearing under Esma standards