Citadel goes live with FX NDFs trades on LCH ForexClear

Rick Steves

“This builds on the strong growth at the service, which has historically been driven by a focus on margin efficiencies that will only increase with Phase 6 of the uncleared margin rules in September 2022.”

Citadel has executed their first cleared FX non-deliverable forwards (NDFs) at LCH ForexClear, the clearing firm announced as it celebrated the go-live of the leading alternative investment firm.

Citadel is now clearing FX NDF trades at LCH ForexClear. Citi is facilitating the trades as the firm’s clearing broker. ForexClear provides clearing for NDFs, FX Options, FX Spot and FX Swaps & Forward Outrights.

Focus on margin efficiencies will only increase

James Pearson, Head of ForexClear, LCH, commented: “Welcoming Citadel to ForexClear is a significant milestone for the industry. This builds on the strong growth at the service, which has historically been driven by a focus on margin efficiencies that will only increase with Phase 6 of the uncleared margin rules in September 2022. There has now been a realisation that FX clearing can also bring significant capital savings, providing further benefits and helping the industry to respond to SA-CCR. For Citadel and many others, FX clearing offers critical operational efficiencies and a credit intermediation advantage that make it compelling.”

John Niccolai, Chief Operating Officer for Global Fixed Income at Citadel, said: “ForexClear is an important first step in the evolution of FX markets toward central clearing, which will increase transparency, reduce counterparty risk and strengthen liquidity. We are pleased to be using the service and look forward to engaging with LCH and other market participants to drive broad adoption of clearing across all currency pairs and FX products.”

Mariam Rafi, Global Head of Clearing and FXPB at Citi, added: “We’re delighted to have supported Citadel in going live with clearing at LCH ForexClear. Citi’s clearing broker services bring the benefits of FX clearing to a broad range of market participants. ForexClear’s wide offering gives us, and our clients, the ability to reduce operational complexity and increase capital efficiencies.”

James Pearson’s 1st anniversary at LCH’s ForexClear

This week also marks the first anniversary of the LCH’s announcement of James Pearson as Head of ForexClear, who started on June 1, 2021, with the task of overseeing the firm’s continued growth from the London office and reporting to Isabelle Girolami, CEO, LCH Ltd.

The industry veteran with over 20 years of experience within the FX industry has previously been Global Head of FX Trading at RBS, where he was responsible for the trading risk, daily management, and strategic direction of the FX business.

Prior to RBS, James held positions as Global Head of G10 FX Spot Trading & EMEA Head of Emerging Markets FX at Nomura and Lehman Brothers. He has also worked on FX Spot and NDF trading desks at Citi and HSBC and has sat on a number of FX industry advisory boards.

The group of multi-asset clearing houses, LCH, operates an open access model, offering a choice of execution venues, delivering choice and efficiencies to the marketplace.

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