Barclays Joins ForexClear As Clearing Broker
- Barclays and LCH’s ForexClear process the first FX client clearing trade under the international clearing broker model
- Barclays is offering clearing of FX derivatives to its clients
- Allows Barclays clients access to LCH’s clearing services, benefitting from risk management and operational efficiencies
- ForexClear provides client and dealer-to-dealer clearing services for FX Non-Deliverable Forwards and Options as well as dealer-to-dealer clearing services for Deliverable FX Options, Spot and Forwards
- In 2020, ForexClear processed $19.1 trillion in cleared notional; $167.2 billion of this was cleared by clients
Tamaryn Nuttall, COO, ForexClear, said: “Barclays is the latest bank to offer client clearing at ForexClear, and is the first to go live processing a client trade via our international clearing broker model. We are delighted to welcome Barclays to our growing FX clearing service and look forward to continuing to work with Barclays and its clients to support their clearing activity.”
.@LCH_Clearing is delighted to welcome Barclays as the latest #clearingbroker to go live at #ForexClear. Barclays’ clients are benefiting from margin and operational efficiencies, and enhanced risk management. Find out more about ForexClear: https://t.co/svumg1C7z1 pic.twitter.com/G1KmOjDwNk
— LCH (@LCH_Clearing) April 15, 2021
Gary Saunders, Global Head of Prime Derivatives Services, Barclays said: “Being the first clearing broker to clear an EMIR/SCM Model trade is another key step in the evolution of our OTC Clearing platform, highlighting the continued investment and market leadership Barclays has in this space. Expanding ease of access to cleared products is vital to our goals of helping clients manage counterparty risk and improving both operational & margin efficiency. We see FX clearing as a very complimentary offering alongside our existing Futures, OTC Clearing and FXPB businesses. Having seamless integration across all of those channels is important for our clients.”
Phase 5 of the uncleared margin rules (UMR) took effect from September 2021.
Temporary equivalence is set to expire on June 30 2022.
IRS trading volumes have fragmented without an equivalence agreement.
Phase 5 of the uncleared margin rules came into effect on 1 September.
Triparty repos can be executed across U.S. Treasury securities to central clearing.