Clearing Channel

Surviving Counterparty Risk and Crashing Rates

These days, clearing is a dicey business. Problems include lean margins, firms falling by the wayside, counterparty risk, falling Federal Funds rates that hurt lending lines and big correspondents changing firms owing to numerous changes on Wall Street, among others.

Goldman Sachs Discusses its Clearing Strategy

Clearing volume should be down some 15 to 20 percent this year, says Brian Duggan, chief executive officer of Goldman Sachs Execution and Clearing Services. That will pose challenges to clearing firms, especially institutional firms that depend on clients who record huge amounts of business, he says. The challenge is this:

Nasdaq Plans to Compete With the NSCC

Nasdaq OMX Group hopes to bring competition to the post-trade clearing world in mid-2009 when it launches a central counterparty that will compete directly with the National Securities Clearing Corp.

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Cover Sidebar: OTC Derivative Clearing, a Different Business

Clearing, which is the process covering everything from execution to settlement, is usually straightforward when it is simply cash for a security transaction. But that's not the case in over-the-counter derivative contracts.

Cover Sidebar: A Reform Too Far

Goldman CEO Lloyd Blankfein, in recent remarks, gave an example of what would be too drastic a reform in derivatives clearing and processing.

Cover Sidebar: HR 3795 New Clearing Requirements

Who is affected by Congress's would be new clearing rules and forced to use clearinghouses instead of the current bilateral system? Here is some of what the bill says on this point.

Nasdaq's Much Debated Clearing Venture Is Dead

The DTCC now offers better prices than a year ago, so competition is not needed, say Nasdaq OMX officials. At presstime the officials announced they were ditching a clearing plan to compete with the DTCC.

Penson Moves Up in the Clearing Competition

Penson now claims to be the number-two clearing firm in the business.

Cover Story: The OTC Derivatives Clearing Debate Heats Up

Here comes a new era in over-the-counter derivatives clearing. It will be an era of heightened regulation, in which swaps dealers could lose power to exchanges, clearinghouses and clearing counterparty systems.

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Articles from this Site

• Surviving Counterparty Risk and Crashing Rates
• Goldman Sachs Discusses its Clearing Strategy
• Nasdaq Plans to Compete With the NSCC
• New Stock Lending Exchange Takes Next Step
• More Articles from this Site