The U.K.'s financial regulator has given LCH.Clearnet Group Ltd. (LCHC.YY) the green light to launch a clearing service for over-the-counter currency non-deliverable forwards, the company said Tuesday.

London's biggest clearing house said it will now work with its members towards launching the service without giving a time frame, after the Financial Services Authority said it had no objections to the move.

The London and Paris-based company, which is in the process of being taken over by the London Stock Exchange Group PLC (LSE.LN), said it may also look at clearing other foreign exchange derivatives.

According to the European Union's European Markets Infrastructure Regulation and the U.S. Dodd-Frank Act, foreign exchange NDFs and options need to be cleared by a central counterparty or CCP. It remains unclear how other foreign exchange derivatives will be treated as a result of the new legislation.

The Chicago-based CME Group Inc (CME) already clears NDFs in the dollar against the Chilean peso and plans to expand that service to other currency pairs.

-By Alexandra Fletcher, Dow Jones Newswires, 44 20 7842 9462; alexandra.fletcher@dowjones.com @djfxtrader

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