Margin and capital efficiency for deliverable and non-deliverable FX

Your Clearing Options

ForexClear delivers unmatched capital and operational efficiencies, including the flexibility and choice of both US and European clearing models. Developed in partnership with market participants, ForexClear empowers you to more effectively meet your daily clearing needs while at the same time benefiting from LCH’s proven risk and default management solutions.

About ForexClear

Foreign exchange markets are shifting to a cleared environment. With interest rate and index credit derivatives already subject to mandatory clearing across the G20 countries, regulators have noted their desire for NDFs to become cleared. ForexClear makes this migration easy for our members and their clients, mitigating their counterparty credit risk while delivering improved operational efficiencies and keeping margin costs lower through the use of multilateral risk netting.

OTC Derivatives Capital & Margin Timeline

The burden of capital requirements has deepened with an array of ongoing requirements, such as the Leverage Ratio, Counterparty Credit Risk charges, and the Liquidity Coverage Ratio, as well as the uncleared margin rules for OTC derivatives.

The timeline below demonstrates the uncleared margin rules that will affect many in the OTC derivatives markets.

VM is posted daily today by all entities

IM posting is required for all entities with more than the below levels of outstanding total gross derivative notional:

  • 2018 — $1.5 trillion
  • 2019 — $0.75 trillion
  • 2021 — $50 billion
  • 2022 — $8 billion
Why ForexClear?

ForexClear launched in 2012 with a single objective: to offer global currency markets a dedicated service for clearing NDFs.  The service has expanded its product offering to include deliverable FX options, forwards, and non-deliverable options clearing.

Since we launched, we have experienced dramatic growth in our cleared volumes.

Key benefits of clearing at ForexClear:

  • Multilateral risk netting – reduces portfolio exposure and ultimately lowers initial margin requirements
  • 24-hour-a-day clearing, five days a week
  • Full STP workflow management – resulting in reduced operating risks and costs
  • A unique LCH default management process – specialist member participation for efficient and orderly liquidation in which the defaulter pays
ForexClear - What We Clear

Offers clearing of Non-deliverable and Deliverable OTC FX

ForexClear - Risk Management

A leader in safeguarding your assets

ForexClear - Fees

View our fees here

ForexClear - Volumes

Our growth brings you more liquidity

ForexClear - Essentials

First steps and other useful information

ForexClear - Team

We’re here to answer your questions

ForexClear - Resources

A repository of the latest thinking and useful links from the ForexClear team