Clearing of forex options is on hold, insiders say

10/19/2011 | Risk.net (subscription required)

Speakers at an industry conference said clearing of foreign exchange options is on hold indefinitely. The Federal Reserve is considering requiring central counterparties to offer full and guaranteed settlement of forex options. "Of all forex products, options were considered to be the one that was most likely to be included in the legislation, but there are Fed-mandated requirements regarding full settlement and collateralization against full settlement that mean options have now been taken off the table until those settlement considerations can be resolved," said David Wallis of Morgan Stanley.

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