Clearing houses rejoice as ESMA postpones NDF clearing

FX derivatives traders breathed a sigh of relief after the European Securities and Markets Authority scrapped clearing of non-deliverable forwards for the time being. This was bad news for LCH.Clearnet, which is the only European clearing house authorised to clear NDFs, but good news for other third-country central counterparties who are still waiting to be recognised as equivalent to their European counterparts — a problem that has superseded all others in NDF discussions. Hazel Sheffield reports.