Citadel Clears its First NDF on ForexClear
Posted by Colin Lambert. Last updated: May 30, 2022
Citadel has started clearing NDF trades at LCH’s ForexClear, with Citi as the clearing broker, adding to what LCH says is good momentum for client clearing, which hit a record $90 billion in Q1, up 42% on the same period in 2021.
“Welcoming Citadel to ForexClear is a significant milestone for the industry,” says James Pearson, head of ForexClear. “This builds on the strong growth at the service, which has historically been driven by a focus on margin efficiencies that will only increase with Phase 6 of the uncleared margin rules in September 2022.
“There has now been a realisation that FX clearing can also bring significant capital savings, providing further benefits and helping the industry to respond to SA-CCR. For Citadel and many others, FX clearing offers critical operational efficiencies and a credit intermediation advantage that make it compelling.”