Overview of Cleared OTC FX

  • 1 Apr 2019
  • By CME Group

The broadest and most capital efficient FX clearing solution

Key Benefits:

Single guaranty fund: a diverse pool of products across asset classes amounting to a >$4 billion Base Guaranty Fund. The result is a secure and cost-effective solution which is 1/11th  of the cost on incremental funding compared to other NDF clearing providers.

Unparalleled portfolio margining opportunities between cleared FX and exchange listed FX futures and options, with NDF margin reductions of up to 90% against emerging market futures and 56% against G10 futures. The regulatory authorization for enabling portfolio margining between ETD FX and OTC FX products is now also in place.

The first  FX Blending solution, which significantly reduces notional outstanding and line items. 

The only cleared cash-settled FX options solution, which provides superior cost and capital efficiencies to physically delivered options solutions, which are cost prohibitive.

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About CME Group

As the world’s leading derivatives marketplace, CME Group is where the world comes to manage risk. Comprised of four exchanges - CME, CBOT, NYMEX and COMEX - we offer the widest range of global benchmark products across all major asset classes, helping businesses everywhere mitigate the myriad of risks they face in today's uncertain global economy.

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