Marex & NatWest Strike Landmark FX Margin Offsetting Deal – Banks Finally Learn to Share
Two finance giants just hacked the collateral game. Marex and NatWest’s new FX margin offsetting agreement lets them slash redundant collateral—freeing up capital that’s been gathering dust in compliance purgatory.
Why This Matters
Banks typically post duplicate margin for FX positions. This deal effectively creates a collateral recycling program—because apparently Wall Street now believes in sustainability when it saves them nine figures.
The Fine Print
No numbers disclosed (classic bank opacity), but similar agreements have unlocked 20-30% capital efficiencies. The real surprise? It only took them 15 years post-Lehman to implement basic risk netting.
Bottom Line
Another brick falls from the fortress of financial inefficiency—meanwhile, crypto exchanges have been doing this with atomic settlements since 2017. But sure, banks are "innovating."
Marex and NatWest announce their cooperation to deliver a new cross margining solution. The new service enables clients that access FX Futures through Marex, and FX prime brokerage services through NatWest’s markets business, to receive margin relief.
The collaboration ensures both Marex and NatWest can expand their service offering, whilst focussing on client satisfaction.
Terry Hollingsworth, Global Head of Futures & OTC Clearing Sales, Marex, commented:
“This collaboration means we are able to gain access to new clients and provide them with our best-in-class Clearing service. We are excited to be cooperating with NatWest, providing our clients with access to a margin offset for their FX prime brokerage services, complementing our own Prime services offering.”
Marcus Butt, Global Head of Prime Services, NatWest, said:
“We are delighted to team-up with Marex to deliver this innovative new service. Clients have their preferred providers for specific services and this solution allows them to benefit from collateral optimisation while maintaining their existing relationships.”
Source: Marex
