LCH Launches Clearing for Non-deliverable Options

​LCH, a leading global rates and multi-asset clearing house, recently announced that it has launched clearing for Non-deliverable Options covering nine currency pairs: BRL, KRW, INR, TWD, AUD, EUR, GBP, JPY, CHF.

According to LCH, Deutsche Bank and JPMorgan are among the first participants to clear the product at LCH.

Building on LCH ForexClear's existing offering, the new service complements clearing of non-deliverable FX forwards, deliverable FX options and deliverable FX forwards, providing further risk management, capital savings, margin and operational efficiency opportunities across FX portfolios.

In addition, the go-live of non-deliverable FX options clearing provides supports to market participants in managing initial margin under the Uncleared Margin Rules.

Paddy Boyle, Head of ForexClear, LCH commented:”We are delighted to have launched non-deliverable FX options clearing at LCH, complementing our strong existing offering. By clearing this product, market participants can access significant operational and capital efficiencies as well as benefiting from the robust risk management associated with clearing.”

Both Deutsche Bank and JPMorgan believe that the launch of non-deliverable FX options clearing reduces operational complexity and increases capital efficiencies.