News Release

Seven FX Market Participants Agree to Clear CME OTC Non-Deliverable Forwards

Thu Nov 09 2017

CHICAGO, Nov. 9, 2017 /PRNewswire/ -- CME Group, the world's leading and most diverse derivatives marketplace, today announced that seven market participants have agreed that they intend to clear OTC FX Non-Deliverable Forwards (NDFs) by the end of Q1 2018.

As more clients and liquidity providers are affected by uncleared margin rules, additional market participants clearing NDFs will provide greater access to the capital efficiencies of OTC FX Clearing for clients around the world. Emerging market currencies provide a unique opportunity to cross-margin NDFs with Non-Deliverable IRS cleared at CME, offering potential initial margin savings of up to 51 percent.

The seven market participants involved include: BBVA, Citi, Itau Unibanco, NatWest Markets, Santander, Standard Chartered and XTX Markets.

"CME is committed to delivering unparalleled capital efficiencies and we are excited to have seven market participants working to execute CME-cleared NDFs with their customers," said Sean Tully, Senior Managing Director of Financials and OTC Products. "Our NDF clearing solution leverages the same guaranty fund as the entire CME Group-listed futures and options complex, enabling material capital savings for our NDF clearing members and lower fees for customers clearing via an FCM – as well as setting the conditions for the portfolio margining of FX futures versus NDFs."

CME Group is the leading FX futures exchange globally with more than $91 billion average daily volume (ADV) across listed FX futures and options year to date, and more than $260 billion of open interest.

CME Clearing is also the market leader in providing a cleared solution in emerging market currencies. More than 170 market participants clear more than $20 billion ADV of MXN and BRL IRS at CME. CME Group announced the launch of Korean Won and Indian Rupee swap clearing on July 11, 2017 and has since seen 17 participants clear over $1 Billion in notional to date.

For more information, please visit: http://www.cmegroup.com/trading/fx/otc.html.

As the world's leading and most diverse derivatives marketplace, CME Group (www.cmegroup.com) is where the world comes to manage risk.  CME Group exchanges offer the widest range of global benchmark products across all major asset classes, including futures and options based on interest ratesequity indexesforeign exchangeenergyagricultural products and metals.  Around the world, CME Group brings buyers and sellers together through its CME Globex® electronic trading platform.  CME Group also operates one of the world's leading central counterparty clearing providers through CME Clearing, which offer clearing and settlement services across asset classes for exchange-traded and over-the-counter derivatives.  CME Group's products and services ensure that businesses around the world can effectively manage risk and achieve growth.

CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex and E-mini are trademarks of Chicago Mercantile Exchange Inc.  CBOT, Chicago Board of Trade, KCBT and Kansas City Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc.  NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc.  COMEX is a trademark of Commodity Exchange, Inc.  Dow Jones, Dow Jones Industrial Average, S&P 500 and S&P are service and/or trademarks of Dow Jones Trademark Holdings LLC, Standard & Poor's Financial Services LLC and S&P/Dow Jones Indices LLC, as the case may be, and have been licensed for use by Chicago Mercantile Exchange Inc.  All other trademarks are the property of their respective owners. 

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SOURCE CME Group

Media Contacts, Fleur Binyon, +44 20 3379 3831, or Liz Mannebach, 312.338.2610, news@cmegroup.com, cmegroup.com/media-room.html, or Investor Contact, John Peschier, 312.930.8491

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