Margin rules lead to NDF clearing surge

With the non-cleared margin regime starting last month, banks have finally looked to clear their non-deliverable foreign exchange forwards. Forex options, however, remain a challenge

A rush and a push: NDF clearing is experiencing a surge

Back in 2010, the UK government set up a ‘nudge' unit, which used behavioural psychology to improve public policy. For instance, it found income tax was paid quicker when payees were sent a reminder letter explaining most of their neighbours had already done so.

Similarly, the new non-cleared derivatives margin rules, which came into force on September 1, are designed to make it more economically desirable for market participants to centrally clear their positions than keep them bilateral – a