Citadel Goes Live at LCH ForexClear05.24.2022
- Citadel has executed their first cleared FX non-deliverable forwards (NDFs) at LCH ForexClear, with Citi acting as the clearing broker
- Client clearing continues to see strong growth at the service with a record quarterly volume of $90bn of notional in Q1 2022, up 42% versus Q1 2021
- ForexClear provides clearing for NDFs, FX Options, FX Spot and FX Swaps & Forward Outrights*
LCH (an LSEG business) is pleased to welcome Citadel’s go live at ForexClear. As a leading alternative investment firm with broad activity across global markets, Citadel is now clearing FX NDF trades at LCH ForexClear. Citi is facilitating the trades as the firm’s clearing broker.
LCH is pleased to welcome Citadel. As a leading alternative investment firm with broad activity across global markets, Citadel is now clearing FX NDF trades at LCH ForexClear. Learn more about ForexClear here: https://t.co/z70imb8siz pic.twitter.com/TV1KArjC5O
— LCH, An LSEG Business (@LCH_Clearing) May 24, 2022
James Pearson, Head of ForexClear, LCH:
“Welcoming Citadel to ForexClear is a significant milestone for the industry. 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.”
John Niccolai, Chief Operating Officer for Global Fixed Income, Citadel:
“ForexClear is an important first step in the evolution of FX markets toward central clearing, which will increase transparency, reduce counterparty risk and strengthen liquidity. We are pleased to be using the service and look forward to engaging with LCH and other market participants to drive broad adoption of clearing across all currency pairs and FX products.”
Mariam Rafi, Global Head of Clearing and FXPB, Citi:
“We’re delighted to have supported Citadel in going live with clearing at LCH ForexClear. Citi’s clearing broker services bring the benefits of FX clearing to a broad range of market participants. ForexClear’s wide offering gives us, and our clients, the ability to reduce operational complexity and increase capital efficiencies.”
CEDX is planning to expand its range of products in 2023, subject to regulatory approvals.
The CFTC regulated derivatives market and clearer was not included in FTX's bankruptcy filing.
Schroders cleared NDF trades across a Asian and Latam currency pairs via Citi.
The derivatives venue owned by FTX wanted to offer products that were not fully collateralized.
Cboe acquired EuroCCP on 1 July 2020.