NatWest bridges FXPB and clearing for regional banks
New model maintains traditional OTC market access with added direct clearing option
NatWest has expanded its foreign exchange prime brokerage model to facilitate central clearing for the client leg of non-deliverable forwards (NDFs) and FX options, as regional banks face rising capital and margin pressures.
The new setup offers greater flexibility for local currency bank clients to clear their trades as direct members of LCH ForexClear, while retaining some of the key benefits of prime broking relationships, such as access to a wide pool of liquidity.
“The main argument for
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