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Seven FX market participants agree to clear CME OTC Non-Deliverable Forwards

First Published 10th November 2017

Increased competition aims for increased innovation and cost efficiency for customers in the OTC FX Space

CME Group has 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.