Dealers drag their feet on NDF clearing, say prime brokers

Executing-brokers-yet-to-be-convinced-on-NDF-clearing

Rebekah Tunstead
12 Jan 2021

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Foreign exchange prime brokers are struggling to persuade dealers to clear non-deliverable forward (NDF) trades, as technological and operational hitches impede the switch to central clearing.

Prime brokerage units at banks such as Citi and Bank of America say that while some of their dealer counterparties have agreed to clear trades, others are holding out. The delay means added costs for both parties in the form of margin.

The trades in question are the leg of NDFs between executing broker

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