CCPs face $161 billion liquidity shortfall to clear FX options, GFXD finds

long-short

Central counterparties (CCPs) seeking to clear physically delivered foreign exchange options must find a mechanism to manage a same-day liquidity shortfall of as much as $161 billion, according to the results of a comprehensive industry study co-ordinated by the global forex division (GFXD) of the Global Financial Markets Association. The publication of the data marks a major milestone in the regulatory drive towards central clearing, given the unique challenges associated with clearing forei