CHICAGO, Nov. 9, 2017 /PRNewswire/ -- CME Group, the
world's leading and most diverse derivatives marketplace, today
announced that seven market participants have agreed that they
intend to clear OTC FX Non-Deliverable Forwards (NDFs) by the end
of Q1 2018.
As more clients and liquidity providers are affected by
uncleared margin rules, additional market participants clearing
NDFs will provide greater access to the capital efficiencies of OTC
FX Clearing for clients around the world. Emerging market
currencies provide a unique opportunity to cross-margin NDFs with
Non-Deliverable IRS cleared at CME, offering potential initial
margin savings of up to 51 percent.
The seven market participants involved include: BBVA, Citi, Itau
Unibanco, NatWest Markets, Santander, Standard Chartered and XTX
Markets.
"CME is committed to delivering unparalleled capital
efficiencies and we are excited to have seven market participants
working to execute CME-cleared NDFs with their customers," said
Sean Tully, Senior Managing Director
of Financials and OTC Products. "Our NDF clearing solution
leverages the same guaranty fund as the entire CME Group-listed
futures and options complex, enabling material capital savings for
our NDF clearing members and lower fees for customers clearing via
an FCM – as well as setting the conditions for the portfolio
margining of FX futures versus NDFs."
CME Group is the leading FX futures exchange globally with more
than $91 billion average daily volume
(ADV) across listed FX futures and options year to date, and more
than $260 billion of open
interest.
CME Clearing is also the market leader in providing a cleared
solution in emerging market currencies. More than 170 market
participants clear more than $20
billion ADV of MXN and BRL IRS at CME. CME Group announced
the launch of Korean Won and Indian Rupee swap clearing on
July 11, 2017 and has since seen 17
participants clear over $1 Billion in
notional to date.
For more information, please visit:
http://www.cmegroup.com/trading/fx/otc.html.
As the world's leading and most diverse derivatives marketplace,
CME Group (www.cmegroup.com) is where the world comes to manage
risk. CME Group exchanges offer the widest range of global
benchmark products across all major asset classes, including
futures and options based on interest rates, equity
indexes, foreign exchange, energy, agricultural
products and metals. Around the world, CME Group
brings buyers and sellers together through its CME Globex®
electronic trading platform. CME Group also operates one of
the world's leading central counterparty clearing providers
through CME Clearing, which offer clearing and settlement
services across asset classes for exchange-traded and
over-the-counter derivatives. CME Group's products and
services ensure that businesses around the world can effectively
manage risk and achieve growth.
CME Group, the Globe logo, CME, Chicago Mercantile Exchange,
Globex and E-mini are trademarks of Chicago Mercantile Exchange
Inc. CBOT, Chicago Board of
Trade, KCBT and Kansas City Board
of Trade are trademarks of Board of Trade of the City of Chicago, Inc. NYMEX, New York
Mercantile Exchange and ClearPort are trademarks of New York
Mercantile Exchange, Inc. COMEX is a trademark of Commodity
Exchange, Inc. Dow Jones, Dow Jones Industrial Average,
S&P 500 and S&P are service and/or trademarks of Dow Jones
Trademark Holdings LLC, Standard & Poor's Financial Services
LLC and S&P/Dow Jones Indices LLC, as the case may be, and have
been licensed for use by Chicago Mercantile Exchange Inc. All
other trademarks are the property of their respective
owners.
CME-G
View original
content:http://www.prnewswire.com/news-releases/seven-fx-market-participants-agree-to-clear-cme-otc-non-deliverable-forwards-300551862.html
SOURCE CME Group