CCPs clear less than 2% of NDF contracts

Market steers away from NDF clearing, according to official figures


Less than 2% of the non-deliverable forward (NDF) market is going through a clearing house on a daily basis, new data shows, suggesting the foreign exchange market is reluctant to embrace clearing before a mandate is established for these contracts.

Figures from Clarus Financial, which collects information from swap data repositories (SDRs) in the US, reveal that on some days no NDF contracts are cleared in the country, while individual currency pairs show varying degrees of clearing.

On June 3,