Citi and Eaton Vance Management cleared first FX cash-settled forwards at the Chicago based derivatives marketplace.

”CME Group is pleased to clear our first cash-settled forwards, which provide a new capital-efficient way for our customers to trade G10 foreign exchange,” says Sean Tully, who is head of financial and OTC products at CME Group, in a press release.

His company now offers clearing for 26 currency pairs of FX cash-settled forwards, as well as 11 pairs of non-deliverable forwards. The first two cleared trades were in Euro/US dollar, for Citi and Eaton Vance Management on 15 January.


”Now is the time”

”We are big supporters of central clearing and now is the time for the FX marketplace to make buy-side clearing of CSFs and NDFs a reality,” says Michael O’Brien, head of global trading at Eaton Vance Management, in the press release.

New rules

Christopher Perkins, head of OTC Clearing and FX Prime Brokerage at Citi, is also quoted as positive.

”Citi is excited to execute and clear the first CME-cleared cash-settled forwards with Eaton Vance Management, an industry milestone,” he says.

”With uncleared margin rules impacting buyside clients over the next two years, Citi is excited to leverage our leadership in the FX PB and clearing space to help clients execute and clear their NDFs and CSFs at CME.”