Bermuda-based 24 Exchange secured approval as an official trade source for FX non-deliverable forward (NDF) clearing at LCH ForexClear, a division of the London Stock Exchange Group (LSEG).

According to the announcement by the company, this milestone allows 24 Exchange’s non-U.S. users to trade and clear transactions seamlessly, reducing counterparty risk and optimizing margin requirements. The new arrangement aims to give institutional foreign exchange traders a better route to trading.

“This new settlement path with LCH ForexClear is an exceptional new option for our non-U.S. users, empowering them to simultaneously reduce their risks and costs while increasing their operational efficiency,” commented Dmitri Galinov, the CEO and Founder of 24 Exchange.

New Clearing Pathway for FX NDFs

By integrating with LCH ForexClear, 24 Exchange reportedly becomes only the second electronic FX trading platform to offer non-U.S. users a direct clearing option. The company recently completed its LCH-cleared production trade in partnership with Standard Chartered Bank in a move to expand FX NDF market accessibility.

According to the company, 24 Exchange’s new connection to LCH ForexClear will improve trade clearing, enabling institutions to minimize their exposure to counterparty risk while benefiting from multilateral margin netting.

The move reportedly aligns with global trends favoring central clearing for over-the-counter (OTC) FX products as institutions seek cost-efficient ways to manage regulatory capital requirements. 24 Exchange is an affiliate of 24X National Exchange, offering FX NDFs, Swaps, and Spot trading services to institutional clients.

Expect ongoing updates as this story evolves.

Source: Finance Magnates