Our FX clearing solution can be applied to both FX Futures and OTC transactions.
We see discretionary FX Clearing playing an important role in the FX industry as firms increasingly turn their focus towards the mitigation of the balance sheet and client portfolio cost impact. Although there is no regulatory mandate to clear FX products, new rules and requirements being imposed on market participants mean that in many cases it will be more economically and operationally efficient for them to centrally clear at least some of the FX exposures in their portfolios rather than continue maintaining multiple bilateral relationships. While 360T has the ability to centrally clear OTC FX trades, we also offer access to FX Futures products which further augment the benefits of Clearing.
Increased Operational Efficiency
With the multi-lateral netting Central Clearing brings, firms can face and service a single position per instrument (e.g. currency pair and value date), rather than servicing individual lines with each of their bilateral counterparties.
Lower Margin Rates
Firms that are centrally clearing their FX trading activity can enjoy lower margin rates from the Clearing House than the equivalent margined position held against a bilateral counterpart.
Access More Counterparties
By using our centrally cleared FX Futures firms can significantly broaden the number of FX market participants that they can trade with. Central Clearing means that firms can trade without the need to have a bilateral credit relationship (ISDAs, CSAs, credit line) with each other.