US-based bank Wells Fargo has become the latest clearing member to join LSEG’s LCH ForexClear.
The bank has processed its first NDF trade through the service and becomes the third new clearing member to join LCH ForexClear in the past 12 months.
Wells Fargo will now be able to benefit from ForexClear’s offering, including margin, liquidity and netting opportunities.
“As we continue to expand our offering to financial institutions globally, following the addition of two new members from Asia and Europe in 2023.
Their membership reinforces our commitment to providing leading FX clearing and financial resource and risk management services to the FX market, as a growing number of firms increase their cleared flow,” said Andrew Batchelor, head of ForexClear, LCH.
LCH ForexClear has experienced growth across its service this year, having achieved record NDF average daily volume (ADV) of $132 billion cleared in June this year, up 33% year-on-year.
Elsewhere, FX options ADV at ForexClear was up 126% year-on-year to $22 billion in June.
“Given the strategic growth of our FX platform over the last few years, it was important to unlock the margin and capital efficiencies provided through ForexClear,” said Vincent Hindman, head of foreign exchange at Wells Fargo.
“As more interbank and client volume continues to migrate towards NDF clearing, this will allow us to further mitigate counterparty credit risk and lower costs through multilateral risk netting.”