Call for user-owned utilities to lower central clearing cost
Survey shows buy-side thirst for clearing utilities, but it is argued a large utility might not provide the right incentives to build an efficient CCP model
The topic of clearing utilities has been discussed in the derivatives industry for more than 20 years. What is most interesting is that the majority of user-owned facilities have either gravitated away from the model or have been taken over by for-profit exchange groups.
Recent examples include the London Stock Exchange Group taking a majority stake in LCH.Clearnet and ICE acquiring Clearing Corp. Regulation and
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