Refinitiv FXall has recently announced its plans to expand FX traders’ access to FX OTC cleared workflows when it comes to trading by bridging its connectivity to LCH. The new solution will provide FXall users with a far more streamlined and swifter method of clearing NDF trades via LCH’s already established ForexClear service. Dependent on approval from regulators, the new solution is due to go live during Q4 of 2021.
Jill Sigelbaum, Head of FXall, said:
This initiative brings together the services of two well-established brands that deliver on that commitment, while empowering institutions minimize counterparty credit risk and achieve capital efficiency opportunities.
In anticipation of Phase 5 of the Uncleared Margin Rules (UMR) set to be implemented in September 2021, buy-side institutions are now working to assess just how they may be affected by the changes. This reflection requires them to weigh up the benefits surrounding FX clearing. Institutions are also now analysing the operational challenges and costs which often correlate with new margin conditions regarding uncleared trades, meaning that they may opt to instead decide to remove segments of their FX flow.