Bermuda-based 24 Exchange secured approval as an official trade source for FX non-deliverable forward (NDF) clearing at LCH ForexClear, 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 to trade and clear transactions, thus reducing counterparty risk and optimizing margin requirements. The new arrangement aims to give institutional foreign exchange traders a better route to trading.
“This new settlement path with LCH ForexClear is an exceptional new option for our non-U.S. users, empowering them to simultaneously reduce their risks and costs while increasing their operational efficiency,” commented Dmitri Galinov, the CEO and Founder of 24 Exchange.
New Clearing Pathway for FX NDFs
By integrating with LCH ForexClear, 24 Exchange reportedly becomes only the second electronic FX trading platform to offer non-U.S. users a direct clearing option. The company recently completed its LCH-cleared production trade in partnership with Standard Chartered Bank to expand FX NDF market accessibility.
According to the company, 24 Exchange’s new connection to LCH ForexClear will improve trade clearing, enabling institutions to minimize their exposure to counterparty risk while benefiting from multilateral margin netting.
The move reportedly aligns with global trends favoring central clearing for over-the-counter (OTC) FX products as institutions seek cost-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 integrate market data and AI-powered analytics services.
“Our strategic collaboration with LSEG marks an ongoing commitment 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 features directly into our trading platform, clients can access a comprehensive range of market-moving news and analysis quickly and effortlessly, empowering them to make 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.Institutional FXRead More
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