Shanghai to be first CCP to clear forex options
New service to debut in August, but liquidity risk has stalled other CCPs
The Shanghai Clearing House (SCH) is set to be the first central counterparty (CCP) globally to clear foreign exchange options when its renminbi/US dollar service goes live on August 1.
Both CME and LCH currently offer clearing for non-deliverable forwards in a range of currency pairs, but do not clear forex options because the business involves significant liquidity risk. No regulator has yet mandated the clearing of forex options for the same reason. It is not clear how SCH will manage the
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact [email protected] to find out more.
You are currently unable to copy this content. Please contact [email protected] to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
More on Derivatives
7 days in 60 seconds
Covid liquidity, block trades and Fed op risk
The week on Risk.net, August 1-7, 2020
Receive this by email