Why the need of clearing Non-Deliverable Forwards?
(1888PressRelease) May 30, 2019 - CGCEX, an ideal trading destination for investors, traders and companies looking to invest, hedge or speculate by tapping into large pools of local, global and institutional investor capital, today announced that five market participants have agreed to clear their Forex Non-Deliverable Forwards. CGCEX with its innovative and robust product suite provides the clients with a platform to operate different functions across different asset ranges. The company offers the economy a variety of product suites, markerting statergy and advise coupled with futures based on currency tracking, and overall growth of the economy.
A non-deliverable forward (NDF) is an outright forward or futures contract by which the involved organisations settle the difference in the above-mentioned NDF price and the spot price floating in the market on an concluded notional amount. It is used in various markets such as foreign exchange and commodities.
A company Head Cost And Management Director, Zhang Xiu Ying stated that due to the uncleared margin rules, more and more liquidity providers and clients are suffering from the transparency dilemma. This has led to the additional market participants clearing their Forex Non-Deliverable Forwards. Clearing the Forwards will provide the market participants with a greater access to capital efficiency.
However, the curent scenario of market currencies are said to provide a unnerving ways to the market consitituncies to cross-margin the Non-Deliverable Forward.
Options are used by the investors, traders, and market participants to precisely manage the currency risk during the week. And seeing this, CGCEX has launched its new options for the market participants. It is believed that the number will go higher as compared to its previous record.
The Forex Non-Deliverable Forward clearing solution offered by CGCEX leverages the guarantee funds similar to the listed-options and futures. This solution will enable material capital savings for the company’s Non-Deliverable Forward clearing members and on the other hand, will charge lower fees for customer clearing through the FCM platform.
The participation of these five marketers will ultimately boost the involvement of Forex Non-Deliverable Fund. The company is believed to execute these solutions for these five participants and on the other hand, is hopeful that seeing their solution providing effective results, other market participants will start clearing their ForEx Non-Deliverable Forwards in the near future.
About Chengdu Commodity Exchange
CGCEX is the premier exchange in Asia, based in China where it is operating as a market place for trading commodities and futures products. CGCEX is an ideal trading destination for investors, traders and companies looking to invest, hedge or speculate by tapping into large pools of local, global and institutional investor capital. Being one of the Asia’s leading exchange it is renowned because of dealing in an extensive range of products. From corporations to the individual and from the institutions to governmental agencies, the exchange believes that providing a sustainable investment opportunity to their clientele will help in building a healthy market.
Why the need of clearing Non-Deliverable Forwards? 
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