Legacy booking models impede NDF clearing, banks say
Operational issues frustrate client clearing of forex products – but some accuse dealers of deliberate foot-dragging
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
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