CCPs eager for first forex clearing mandate
Market participants claim a clearing mandate for non-deliverable forwards is written, but has been languishing while the Commodity Futures Trading Commission puts new leadership in place. With that now done, some say the rules could be issued within weeks. Fiona Maxwell reports
Central clearing of foreign exchange derivatives has been a long time coming. More than three years after the first central counterparty (CCP) launched a service for the clearing of non-deliverable forwards (NDFs) – and over a year since US clearing mandates kicked in for interest rate swaps and credit default swaps – the market is still waiting for the Commodity Futures Trading Commission (CFTC) to pull the trigger. Some believe the wait could soon be over.
"I think it will happen in July. They
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