Essentials

Unsure about how an OTC FX instrument can be converted into a cleared position? The process begins in exactly the same way you would execute a bilateral FX trade today.

Trades are negotiated and traded bilaterally between parties. Counterparties can then independently submit their trade side to be matched at a middleware provider or, if executed on a trading venue that is directly connected to LCH, the venue will match and submit the trade directly to LCH on your behalf.  

Once received and novated, notification of trade status updates are relayed from ForexClear to members via the middleware provider or venue. Counterparties can also be sent direct notification of clearing acceptance via the ForexClear API.

Once both legs of the trade are facing LCH, we calculate margin requirements for counterparties on an intraday basis and we undertake the fixing and settlement of trades on maturity.

Our members and clients can register trades 24 hours a day, 5.5 days a week.

The transfer of cash collateral, trade settlement and any other cash transactions associated with ForexClear are facilitated by LCH’s Protected Payments System (PPS), a direct debit arrangement under which participating banks commit to meet cash calls following instructions from LCH.

^[1]middleware providers