Standard Chartered Has NDF First at ForexClear
Posted by Colin Lambert. Last updated: March 7, 2023
LCH ForexClear says Standard Chartered has partnered with IndusInd Bank to clear its first NDF client transaction at LCH, the transaction also marks a first for IndusInd Bank clearing OTC FX at ForexClear.
LCH says it has continued to see strong growth of its FX client clearing services, with Standard Chartered the latest organisation to provide its customers with access to ForexClear. It adds there are now 20 entities providing client clearing support, a 67% increase from 2021, with IndusInd Bank becoming the second Indian bank to clear.
“We continue to see a growing number of firms from Asia Pacific choosing to clear through ForexClear and benefit from the margin, capital and operational efficiencies our services provide,” says James Pearson, head of ForexClear at LCH. “We are pleased to be able to offer a diverse set of products to our customers in the APAC region, unlocking further liquidity in the cleared FX market.”
Andy Ross, global head of prime brokerage, Standard Chartered, adds, “Through our use of the service, we can support a broader range of market participants, enabling them to benefit from reduced operational complexity, robust risk management and increased liquidity.”
LCH says a record $516 billion notional was cleared by clients at ForexClear in 2022, with 69% from APAC clients. The service registered a 50% increase in clients accessing ForexClear from APAC in 2022, and a 41% year-on-year increase in APAC client trades cleared. In 2022, ForexClear also launched clearing with settlement for USD/JPY and EUR/JPY FX Options, and owner LSEG announced plans to launch a new NDF matching platform in Singapore in 2023 that will be directly connected to ForexClear.