LCH, CME or OTC? Forex traders weigh their options

Bilateral trading costs bite but dealers lukewarm on both firms’ plans for forex options clearing

‘Between a rock and a hard place’ doesn’t quite cover the bind that traders of foreign exchange options are in. ‘Between a rock, a hard place and a really hard place’ may do. 

The market is presented with three unpalatable choices: either to continue trading bilaterally and swallow the higher costs imposed by non-cleared margin rules, or start clearing once this service becomes available for forex options. But neither of the two central counterparties (CCPs) expected to start clearing the produ