LCH ForexClear teams up with FX Connect TradeNeXus
September 23, 2019
- Buy-side users of FX Connect TradeNeXus benefit from STP access to LCH’s clearing services
- Asset managers can now streamline their workflows for clearing FX derivatives
- AllianceBernstein LP, Brandywine Global Investment Management, Standard Chartered Bank, and State Street among first to collaborate with ForexClear and TradeNeXus on this new service
LCH, a leading global clearing house, today announced that it is the first clearing house to integrate with FX Connect TradeNeXus, State Street’s FX trading platform that provides exception based automated matching, trade and settlement confirmation enrichment and third party messaging. The new link provides users of TradeNeXus with easy access to ForexClear’s clearing service, while retaining the familiarity and functionality of its existing bilateral services. AllianceBernstein LP, Brandywine Global Investment Management, Standard Chartered Bank, and State Street are among the first firms to collaborate with ForexClear and TradeNeXus on the service.
Initially available for G10 and emerging market FX non-deliverable forwards (NDFs), asset managers on FX Connect’s platform can now benefit from direct access to LCH’s clearing service, via workflows integrated into TradeNeXus. ForexClear offers NDF clearing services across 12 emerging market currencies and five G10 currencies, providing risk management and efficiencies to clearing members and their clients. FX Connect TradeNeXus provides its clients a front-to-back FX ecosystem for managing their bilateral and cleared trades through automated trade matching, trade and settlement confirmation enrichment and messaging.
Paddy Boyle, Head of ForexClear, LCH, said: “Connecting FX Connect TradeNeXus as a new trade source for ForexClear makes it easier than ever for asset managers to clear their FX derivatives portfolios. This new connection comes at an opportune time of increased demand for clearing services with most of the largest asset managers becoming subject to uncleared margin rules this year or next.”
Gaetano DiMiceli, Head of Derivative Operations and Technology, AllianceBernstein LP, said: “Clearing offers us significant benefits in terms of counterparty risk management, and enables us to have complete trade certainty. We’re pleased that TradeNeXus now offers routes to LCH on a platform we already have experience with so that our access to clearing has become even more efficient.”
Mark Solomon, Director, Client and Trading Operations, Brandywine Global Investment Management, said: “We are excited to be at the forefront of this initiative, partnering with LCH and FX Connect TradeNeXus on the development of this new FX clearing workflow. The seamless integration between FX Connect and our order management system is simple to implement and will help improve efficiencies. We now can offer our clients an alternative FX execution method that provides significant benefits related to counterparty risk management and reducing initial margin requirements when trading bilaterally.”
Kate Lowe, Managing Director, Global Head of TradeNeXus, said: “Uncleared margin rules are changing the way the market looks at post-execution workflows. We’re seeing increasing demand for integration of a cleared settlement model as an extension of our existing settlement matching and messaging services. Our goal is to make this a seamless solution to ensure as little disruption as possible for our clients. FX Connect TradeNeXus is uniquely positioned to support our clients’ incorporation of FX clearing to their existing bilateral process. We are excited to work with LCH ForexClear and our buy- and sell-side partners in designing this front-to-back clearing solution.”
LCH is a group of leading multi-asset clearing houses that provides proven risk management capabilities across a range of asset classes. As demand for robust clearing services continues to grow, LCH is committed to maintaining the highest standards of risk management across all our services.
As the markets’ partner, LCH operates an open access model, offering a choice of execution venues, delivering unprecedented choice and efficiencies to the marketplace.
LCH operates clearing houses around the world, with clearing houses incorporated in the UK, France and the United States with additional offices in the Asia Pacific region. It offers clearing services across asset classes including OTC and listed rates; CDS and FX; fixed income; commodities; cash equities and equity derivatives. LCH also serves the non-cleared derivatives market through LCH SwapAgent, a new service which extends the efficiencies and infrastructure of clearing to the market, without acting as a central counterparty.
LCH is majority owned by London Stock Exchange Group (LSE.L), an international markets infrastructure business that sits at the heart of the world's financial community.
Further information on LCH can be found at www.lch.com.