OTC FX Non-Deliverable Forwards (NDFs)

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Global derivative regulations have made financial institutions more focused on capital ratios and margin requirements on bilateral trades. Although NDFs are not mandated for clearing, they are heavily impacted by these regulations, which makes voluntary clearing of NDFs advantageous.

Key Benefits of Clearing

Aggregated positions in a single account, directly with the clearing house or via an FCM

A single account enables counterparty netting, reducing margin requirements

Increased efficiency – compression tools operating on a netted book can achieve optimal reductions in line items and gross notional to the potential benefit of leverage ratio calculations and FCM charges

Extensive collateral opportunities – CME accepts a wide range of assets to meet Initial Margin requirements enabling customers to optimise their funding costs

FX Blending

FX blending for non-deliverable forwards (NDFs) is now live at CME.  

Global regulation has increased the focus on capital ratios and margin requirements on bilateral trades.

Learn how, by clearing your NDF trades through CME, you can benefit from capital and operational efficiencies by reducing line items and gross notional with the FX blending tool.

Watch a simple worked example using USD/BRL non-deliverable forwards and see how FX blending can help your NDF portfolio. Understand how the tool calculates and compresses the trades, whilst maintaining the same risk profile, and generates reductions.

Dealer and FCM Update

In November 2017, seven market participants agreed to clear CME NDFs: BBVA, Citi, Itau Unibanco, NatWest Markets, Santander, Standard Chartered and XTX Markets.

To Date

  • Three of the leading client-clearing FCMs successfully cleared NDFs for their clients: Citi, Credit Suisse and Morgan Stanley.
  • Buy-side clients started to clear with CME in Q4 2017 and more buy-side accounts are expected in H1 2018 as clients complete internal readiness.

Product News


  • End of 2017: Blending and compression for NDFs was a clear ask from dealers and clients
  • February 2018: CME delivers first compression tool for cleared NDFs available to both members and clients that clear via an FCM

Portfolio Margining of Exchange-Traded FX Futures versus OTC Cleared FX Options, NDFs and G10 NDFs

  • Key regulatory milestone met
  • Successful IM analysis has been run on real and dummy portfolios to show the benefits of this service
  • Moving forward with the final build to offer the service in production later this year

Product Offering

11 NDF currency pairs*












*All USD Settlement