Derivatives marketplace CME Group (NASDAQ:CME) has just informed the public that Citi (NYSE:C) and Eaton Vance Management began clearing FX Cash-Settled Forwards at CME Group. CME has already cleared two Euro / US dollar trades on January 15, 2019.
CME has recently achieved Asia Pacific average daily volume (ADV) of 921,000 contracts in Q4 2018, up 45% from the corresponding period in 2017 and has released multiple record volumes in 2018.
Sean Tully, Senior Managing Director – Financial and OTC Products at CME Group
CME Group is pleased to clear our first cash-settled forwards, which provide a new capital-efficient way for our customers to trade G10 foreign exchange,” said Sean Tully, CME Group Global Head of Financial and OTC Products. “This first cash-settled trade, combined with the recent increase in our Non-Deliverable Forward clearing volume in late 2018, allows us to work with our clients, clearing members and liquidity providers to help customers mitigate their risks through cleared solutions.
Citi is excited to execute and clear the first CME-cleared cash-settled forwards with Eaton Vance Management, an industry milestone,” commented Christopher Perkins, Global Head, OTC Clearing and FX Prime Brokerage at Citi. “With uncleared margin rules impacting buyside clients over the next two years, Citi is excited to leverage our leadership in the FX PB and clearing space to help clients execute and clear their NDFs and CSFs at CME.
Eaton Vance Management strives to reduce the total cost of trading for our investors,” added Michael O’Brien, Head of Global Trading at Eaton Vance Management. “We are big supporters of central clearing and now is the time for the FX marketplace to make buy-side clearing of CSFs and NDFs a reality.
CME Group offers clearing for 26 currency pairs of FX cash-settled forwards and 11 pairs of non-deliverable forwards.