The chief executive of LCH.Clearnet’s specialist foreign exchange clearing house has criticised the decision by European regulators to abandon clearing for certain types of FX trades.

The European Securities and Markets Authority decision last week not to introduce a clearing mandate for non-deliverable FX forwards - a type of contract where counterparties settle an FX transaction at an agreed time for a fixed rate - came after it received negative feedback from a consultation released in October 2014, which was initially triggered by LCH.Clearnet's authorisation under Emir to clear NDFs.