NDFs, which facilitate trading of currencies such as the Chinese yuan, Chilean peso, and Brazilian real – currencies that are not freely tradable – have been classified as swaps under the Dodd-Frank regulation in the US and are therefore subject to clearing rules released by the CFTC late last year. NASDAQ’s decision to enter the market for NDF clearing puts it in competition with the CME Group, the London Clearing House, the Intercontinental Exchange and the Singapore Exchange, all of which have said they intend to start clearing NDFs.
Amsterdam-based stock exchange Euronext is also believed to be working on proposals to enter the market, sources say.
NASDAQ was unavailable for comment.