LCH ForexClear Adds 24 Exchange as a Clearing Partner for Currency Derivatives ⋅ Crypto World Echo
Bermuda-based 24 Exchange secured approval as anofficial trade source for FX non-deliverable forward (NDF) clearing at LCHForexClear, a division of the London Stock Exchange Group (LSEG).
According to the company’s announcement, this milestone allows 24 Exchange’s non-U.S. users totrade and clear transactions, thus reducing counterparty risk andoptimizing margin requirements. The new arrangement aims to give institutionalforeign exchange traders a better route to trading.
“This new settlement path with LCH ForexClear is anexceptional new option for our non-U.S. users, empowering them tosimultaneously reduce their risks and costs while increasing their operationalefficiency,” commented Dmitri Galinov, the CEO and Founder of 24 Exchange.
New Clearing Pathway for FX NDFs
By integrating with LCH ForexClear, 24 Exchangereportedly becomes only the second electronic FX trading platform to offernon-U.S. users a direct clearing option. The company recently completed its LCH-clearedproduction trade in partnership with Standard Chartered Bank to expandFX NDF market accessibility.
According to the company, 24 Exchange’s new connectionto LCH ForexClear will improve trade clearing, enabling institutions to minimize their exposure to counterparty risk while benefiting from multilateral marginnetting.
The move reportedly aligns with global trends favoringcentral clearing for over-the-counter (OTC) FX products as institutions seekcost-efficient ways to manage regulatory capital requirements. 24 Exchange is an affiliate of 24X National Exchange, offering FX NDFs, Swaps, and spot trading services to institutional clients.
More Collaborations with the LSEG
More brokerage firms have recently collaborated with the LSEG to expand their offerings. For example, the online trading platform Capital.com recently partnered with the London Stock Exchange Group to integratemarket data and AI-powered analytics services.
“Our strategic collaboration with LSEG marks an ongoingcommitment to partner with the very best organizations to support our clients,”commented Christoforos Soutzis, Chief Executive Officer of Capital.com Europe.
“By integrating LSEG’s powerful data and analytics featuresdirectly into our trading platform, clients can access a comprehensive range ofmarket-moving news and analysis quickly and effortlessly, empowering them tomake informed decisions faster than ever before,” he added.
Besides that, Finalto Group integrated its Prime of Prime (PoP) service with the London Stock Exchange Group’s (LSEG) FX Matching venue last year to allow institutional clients to access FX Matching’s liquidity pool and optimize their portfolio.
This article was written by Jared Kirui at www.financemagnates.com.
