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LCH ForexClear sees $1 trillion monthly clearing record

New monthly and daily records set at ForexClear as uncleared margin rules drive clearing business at LCH.

By Hayley McDowell hayley.mcdowell@strategic-i.com September 05, 2017 11:07 AM GMT

LCH’s ForexClear business processed more than $1 trillion in notional in August this year, a new record for cleared FX non-deliverable forwards (NDFs).

A new daily record for notional cleared was also seen on 29 August, with more than $65 billion processed over the course of the day.

ForexClear said it has seen the a significant increase in demand for its NDF clearing service since the introduction of the uncleared margin rules in September last year.

Paddy Boyle, global head of ForexClear at LCH, explained the rules continue to be a key driver of clearing activity for the firm.

Commenting on the new notional records, he added: “These record volumes demonstrate that the margin, capital, risk and operational efficiencies that clearing brings to the market are proving persuasive to ever more market participants.”

ForexClear now has more than 28 clearing members and it says it has seen growing interest from potential buy-side clients.

Last week, JP Morgan announced it had cleared its first NDF trades with ForexClear since introducing FX to its OTC clearing.

The investment bank said the launch aims to provide its clients with full transparency of clearing from the point of execution through to settlement.