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
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