Wells Fargo Joins ForexClear

Wells Fargo has become the third new clearing member to joins LCH’s ForexClear over the past 12 months, a move likely to reinforce recent growth in volumes across the service.

ForexClear says it saw record volumes in June 2024, driven by a new peak of $132 billion in NDF volume cleared daily during the month, a 33% year-on-year rise, as well as FX options ADV of $22 billion in June, a 126% increase from the same month in 2023.

Wells Fargo has cleared its first NDF trade on ForexClear, and its addition to the ranks brings the number of firms on the service to 84 clients and 41 member entities.

“We continue to expand our offering to financial institutions globally, following the addition of two new members from Asia and Europe in 2023,” says Andrew Batchelor, head of ForexClear. “[Wells Fargo’s] membership reinforces our commitment to providing leading FX clearing and financial resource and risk management services to the FX market, as a growing number of firms increase their cleared flow.”

Vincent Hindman, head of foreign exchange, Wells Fargo, adds, “Given the strategic growth of our FX platform over the last few years, it was important to unlock the margin and capital efficiencies provided through ForexClear. As more interbank and client volume continues to migrate towards NDF clearing, this will allow us to further mitigate counterparty credit risk and lower costs through multilateral risk netting.”