FX options clearing a 'big challenge', warns NY Fed official
Speaking at the FX Invest West Coast conference, the New York Fed's Jeanmarie Davis addressed the challenges associated with clearing and settlement of forex options
Central counterparties (CCPs) must prove they can settle foreign exchange options by physically delivering currencies even in stressed situations before the product can be considered for clearing under new regulation, a senior official at the Federal Reserve Bank of New York has warned.
The warning comes as forex market participants continue to grapple with the challenge of clearing physically delivered products. While foreign exchange swaps and forwards have been exempted from clearing in the
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