FXMarketSpace Announces US$35 Billion Settled Using Fxsettle

19 September 2008

FXMarketSpace, the first centrally-cleared, global foreign exchange (FX) platform for the over the counter (OTC) market, today announced that at the end of August over US$35 billion has been successfully settled using the FXSettle service.

Recent volatile financial markets, with some counterparties unable to settle their trades, have highlighted the importance of credit risk management. FXMarketSpace is the only trading platform where both replacement risk and settlement risk are eliminated. Settlement is guaranteed by CME Clearing, the world’s largest clearing house, acting as the central counterparty. FXSettle has attracted customers as it is ideally suited to reduce credit risk.

Launched in March, 2008, FXSettle is live with three global settlement banks. It offers customers a choice of how to settle completed trades, reduces credit risk and substantially cuts settlement costs. FXSettle securely routes trades dealt on FXMarketSpace directly to the customer’s bank or settlement agent, providing increased efficiency whilst guaranteeing against both replacement risk and settlement risk.

Mark Robson, Chief Executive Officer, FXMarketSpace, said, “Never has credit risk management been more important to the financial markets and our customers see significant value in FXMarketSpace trades being guaranteed. We are delighted that we are able to demonstrate the successful adoption of FXSettle.”

Rick Sears, President, FXMarketSpace, said, “FXSettle demonstrates how a cleared model can bring benefits to the OTC market. Implementing FXSettle with our clearing customers was a straight forward process.”

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