The FX swaps client clearing comeback

August was supposed to be the month when foreign exchange forwards were finally brought into clearing.

“By September 2020, anyone trading OTC options or non-deliverable forwards will have to pay initial margin and variation margin every day. On forwards they will have to pay variation margin every day. It’s so much easier to do that with a single CCP rather than bilaterally with every counterparty you trade with,” said Gavin Wells, then-head of LCH’s ForexClear service, speaking in 2016.

But