Legacy booking models impede NDF clearing, banks say

Novation lag holds up clearing of forex products; some say dealers are dragging feet

Photo of ticket barrier
Barrier to entry: trade booking problems for NDFs

A blind spot in the trade booking systems of many banks is deterring them from porting non-deliverable forwards (NDFs) executed with foreign exchange prime brokers to central counterparties, market participants say.

The problem – which may affect as many as two-thirds of dealers – prevents banks from tracking profits on cleared trades with buy-side clients and attributing these to individual salespeople.

“Executing brokers have a problem: when they move a trade facing a client and its prime

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 copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: