Clear your NDFs at Eurex Clearing

Non-Deliverable Forwards

Clear your Non-Deliverable Forwards (NDFs) at Eurex Clearing, the EU-based CCP. With Eurex Clearing, you're signed up for future-proof clearing services that provide safety and efficiency to the market.

NDF Clearing has been developed in close cooperation with buy- and sell-side partners, creating a Pan-European service that meets market demands and all regulatory requirements. As a service of Eurex Clearing, NDF Clearing provides exceptional margin, capital and operational efficiencies making Eurex Clearing the go-to CCP for EU market participants.

With phases 1-5 of UMR now in effect, the market focus now shifts to Phase 6, scheduled for September 2022. In the FX space, besides FX options, NDFs are the key product as they contribute to the overall AANA calculation. By centrally clearing these in-scope trades at Eurex Clearing, firms remove transactions from their AANA calculation, potentially removing them from the scope of UMR altogether.


OTC FX clearing benefits and UMR

In this article, Archana Varshney, Head of OTC FX Sales and Business Development, analyses both the challenges and benefits associated with central clearing. The article is part of 360T’s FX Spotlight Issue 2/2021.
Read the article

Key Benefits

As Uncleared Margin Rules (UMR) continue to be phased in, impacting many participants in the OTC derivatives market, NDF clearing at Eurex Clearing can provide unrivaled benefits:

  • EU-based CCP
    European domiciled CCP guarantees clearing certainty within the EU regulatory framework.
                
  • Funding efficiency
    The single default fund across asset classes does not require additional minimum contributions for NDFs.
                 
  • Margin reduction
    Multilateral netting reduces margin requirements and provides operational efficiencies through one daily variation margin movement.
                 
  • Simple Onboarding & Integration
    Efficient and easy onboarding process leverages existing connectivity, reporting, and collateral accounts across all services of Eurex Clearing.


Uncleared Margin Rules

Phase 6 of Uncleared Margin Rules (UMR) is approaching. This means that in September 2022, firms with an Average Aggregate Notional Amount (AANA) greater than EUR 8 billion are required to post initial margin bilaterally with each of their counterparts.


NDF trading and clearing flow


NDF clearing at a glance

Starting soon (subject to regulatory approval), NDF clearing is available for both inter-dealer and client trades for six currency pairs with cash settlement in USD.


Contacts

Jens Quiram

Global Head of FX

+49 6921112619

jens.quiram@eurex.com

Archana Varshney

Head of FX OTC Sales & Business Development

+44 2078627269

archana.varshney@eurex.com

Henry Weindling

FX OTC Sales

+44 7825692266

henry.weindling@eurex.com

Tobias Rank

FX OTC Sales

+44 2078627664

tobias.rank@eurex.com