The Shanghai Clearing House (SCH) is set to be the first central counterparty (CCP) globally to clear foreign exchange options when its renminbi/US dollar service goes live on August 1.
Both CME and LCH currently offer clearing for non-deliverable forwards in a range of currency pairs, but do not clear forex options because the business involves significant liquidity risk. No regulator has yet mandated the clearing of forex options for the same reason. It is not clear how SCH will manage the ris
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