LCH, CME or OTC? Forex traders weigh their options

Bilateral trading costs bite but dealers lukewarm on both firms’ plans for forex options clearing

‘Between a rock and a hard place’ doesn’t quite cover the bind that traders of foreign exchange options are in. ‘Between a rock, a hard place and a really hard place’ may do. 

The market is presented with three unpalatable choices: either to continue trading bilaterally and swallow the higher costs imposed by non-cleared margin rules, or start clearing once this service becomes available for forex options. But neither of the two central counterparties (CCPs) expected to start clearing the

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 info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

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