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Flexible, Secure Clearing for OTC FX
Now Available: OTC U.S. Dollar/Chilean Peso Non-Deliverable Forwards
USD/CLP NDFs are the first contracts offered for clearing services through CME
ClearPort, in collaboration with ICAP. This collaborative relationship
integrates ICAP's valuation settlements along with CME Group's post-execution
clearing services and meets the needs of OTC emerging markets currency traders
around the world.
Centrally cleared USD/CLP NDFs are designed to:
- Increase trading volume and build deeper liquidity in Chilean peso trading, due to
freed-up credit lines - Open trading access to new counterparties, previously limited by lengthy ISDA regulations
We are working towards a rollout of a full suite of cleared OTC FX products later this year. This includes 37 additional OTC FX contracts (11 Non-Deliverable Forwards (NDFs) and 26 Cash-Settled Futures (CSFs)), which were filed to CFTC on September 22, 2011.
About CME ClearPort
CME ClearPort:
- Is a post-execution trade capture and submission platform that provides comprehensive and flexible solutions for the OTC market
- Offers an open-access, platform-agnostic structure - lets you control how, with whom, and on what terms you trade
- Enables substantial mitigation of counterparty credit risk in the OTC marketplace
- Clears nearly 500,000 contracts daily, on more than 1,000 products, across multiple asset classes
How CME ClearPort Works |
About ICAP |
Resources |
Get Started |
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ICAP is a U.K.-based inter-dealer currency broker. It also provides an array of post-trade risk and information services for the global marketplace. The relationship between ICAP and CME Group for post-execution clearing of USD/CLP NDFs draws upon the expertise of both companies. Together, they are working to help build and strengthen the market for Chilean Peso. To learn more about ICAP, visit www.icap.com |
Benefits of Cleared OTC FX and CME ClearPort
Counterparty Risk Mitigation
CME ClearPort uses a central counterparty clearing model, where CME Clearing becomes the buyer to every seller and the seller to every buyer, virtually guaranteeing the financial obligation of both parties.
Enhanced Operational Efficiency
Post-trade clearing and processing with CME ClearPort eliminates significant documentation time. In addition, all OTC FX positions (e.g., spot, forwards, swaps, options, NDFs, etc.) sent to CME allow for the same cross-margin efficiencies as exchange-traded FX futures and options and our portfolio margining provides valuable risk mitigation for portfolios of longer-dated risk products.
Sequestered Customer Account Treatment
Our cleared OTC FX transactions are covered in the OTC Derivatives Account Class which provides the benefits of bankruptcy protection and portability of customer funds under the full financial safeguards package of CME Clearing
Independent, Third-Party Valuations
CME ClearPort gives you access to neutral, third-party valuations and our daily mark-to-market process enables you to track positions accurately and assess risk.
