Paired delivery floated as options-clearing solution
But doubts persist whether the model will work for OTC FX
Paired delivery has been floated as a possible solution for clearing FX options, according to people familiar with the discussion, but the idea could be thwarted by the Federal Reserve of New York, which is said to be sceptical of the model working for over-the-counter contracts.
The suggested assignment-based process – whereby clearing members with open long and short positions at the end of trading on the last trade date will be matched against one another to facilitate delivery – was the main
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