NDF Clearing February 2018

We update our NDF Clearing Analysis. A minimum of 17% of the market is now cleared. Clearing volume can account for up to 30% of volumes in some currency pairs. Uncleared Margin Rules continue to motivate clearing. All Time Record Volumes Cleared NDF volumes continue to grow at an impressive rate. Since we last looked […]

G10 FX NDF Clearing

CCPView data reveals that NDFs in deliverable major currency pairs are being cleared. Contracts in EURUSD, GBPUSD, AUDUSD, CHFUSD and USDJPY have been reported. LCH ForexClear have made these available to clear, alongside their more traditional EM currency NDFs. The LCH press release suggests these are being used to optimise bilateral ISDA SIMM margins. Clearing […]

FX Clearing – the $750bn market that keeps growing

LCH ForexClear continues to dominate the cleared NDF market. CME have recently announced that 7 market participants intend to clear NDFs across their service next year. We look at the CME’s existing volumes in FX futures. FX NDF Clearing Update When we last looked at NDF Clearing in June 2017, we saw that LCH were […]

FX NDF Package Transactions

Today, I looked at packages of FX NDF trades on the SDR, expecting to be able to find some basic packages, or even just logical groupings of trades such as: FX NDF Swaps.  These would have a near & far leg, and the price differs by some forward points. Par Forwards.  These are a structure […]

VM Big Bang – Impact on FX Markets

The six month reprieve from UMRs expired 1st September. We look at trading in uncleared markets in the past six months to see if anything changed. The number of uncleared IRS trades has shrunk by 50% as the regulations took hold. Products with no cleared alternatives continue to trade bilaterally. Volumes have continued to be […]

NDF Clearing Update

Little has changed in FX NDF Clearing since our last update in March. From the data, Clearing is now a “business as usual” operation for a significant sector of the market. We further refine our data methodology by introducing an estimate of the errors inherent in our market share metrics. These errors look to be acceptably small, at […]

Examining The Cleared OTC FX Options Market

One of the better known / worst kept secrets in the OTC markets these days is that the largest clearing houses are planning to clear FX Options. Details on this are very thin.  LCH have made a couple announcements over the years with respect to clearing options, and if you look hard enough on the […]

NDF Trading After 1st March

Open Interest of NDFs has set new records recently. Volumes have continued to be elevated compared to 2016. We have not seen a significant change in behaviour since the 1st March VM big bang. Overall, we estimate 15% of the entire market is now cleared. Up to 35% of D2D volumes are being cleared during any […]

NDF Volumes – It’s all about Clearing

Cleared volumes are now a significant portion of the NDF market. The percentage of the NDF market that is cleared has steadily increased every month since September, to now stand at 14%. We estimate that 35% of Dealer-to-Dealer volumes are now cleared as a consequence of the Uncleared Margin Rules. A Brief Recap Our SDRView data products display trades […]