We’re pleased to share the latest instalment of our UMR Series which focuses on FX clearing.
This report was written off the back of a digital boardroom with a bespoke group of senior buy side who talked through the benefits and roadblocks they’re seeing on their desks. In addition to the benefits in light of the regulation, the group talked through how clearing can reduce counterparty risk, simplify operations, reduce funding costs and provide access to deeper liquidity.
However there were still many areas of adoption that need clarifying…
While physically settled FX forwards, FX swaps and currency swaps are exempted from two-way IM exchange, importantly they still count towards a firm’s aggregate average notional amount (AANA).”