London Stock Exchange Group’s (LSEG) Non-Deliverable Forwards (NDF) matching platform has gone live in Singapore, designed to bring together the liquidity, execution, operational and capital benefits of an NDF central limit order book and clearing for the first time.
LSEG said the new NDF matching venue caters to the demand for NDF central limit order book market infrastructure in Asia and around the globe, including from LSEG’s network of more than 5,000 FX trading desktop users in the region. It also brings to market a trading platform on which a broader array of market participants can decide to clear their NDFs on a pre-trade basis.
Neill Penney, group head of FX, LSEG, said: “This new platform brings together multiple advances in our FX offering: our new trading technology; post-trade expertise from LCH ForexClear, enabling clearing as a choice at execution for the first time; our new enhanced trading desktop, LSEG Workspace; and hosting in Singapore for closer proximity to the Asian NDF markets.”
“The launch of NDF Matching is the first phase of our replatforming initiative, which involves the migration of our FX venues on to LSEG’s common core technology platform. This will provide market participants with better performance, improved functionality, streamlined connectivity, and support faster product innovation in the future. We appreciate the commitment from our customers, who are as excited as we are in this next step forward for the FX industry,.” Penney added.
All trades executed on the venue are submitted to LCH ForexClear for clearing. With LCH ForexClear acting as the Central Counterparty (CCP), it removes the necessity to have a centralised or bilateral credit model.
LSEG said the integration of clearing into NDF Matching will enable easier access to the full book of liquidity in the venue for all participants and better transparency of the market while cleared settlement means simplified credit management, lower costs, and easier adoption by non-bank participants.
© Markets Media Europe 2023
