Self-Clearing in Danger
Clearing Quarterly & Directory
Clearing Quarterly & Directory: Winter 2007
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.
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