Commentary

John Turney
Traders Magazine Online News

Foreign Exchange Infrastructure: Yesterday, Today and Tomorrow

In this exclusive to Traders Magazine, John Turney, Global Head of Outsourced FX at Northern Trust, discusses the evolution of the fx infrastructure and what is to come.

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December 19, 2007

Self-Clearing in Danger

Clearing Quarterly & Directory

By Gregory Bresiger

It’s more and more difficult for brokerages to self-clear, so the trend toward fewer clearers should continue in the near future. That’s according to two clearing officials, one with a wirehouse and one with a regional, who declined to be quoted by name. Still, they spoke candidly to CQ&D about their industry. Many firms that now self-clear have technology that is too old. “They’re not going to be able to keep up,” said an official. Another clearing official, this one with one of the biggest firms on the Street, agreed: “So many firms are just trying to patch up their systems so they can keep clearing in house. That’s not going to work forever. It will just become too expensive, and they’re going to be forced to use somebody’s else system,” he adds.