Non-bank FCMs unlikely to fill OTC gap
Clearing specialists doubt non-banks can fill the gaps left by dealers retreating from the clearing business due to leverage ratio concerns
Non-banks are unlikely to fill the gap left by retreating or constrained over-the-counter derivatives bank clearing members in Europe, according to market specialists.
Nomura, Royal Bank of Scotland, Bank of New York Mellon and State Street have all either retreated from OTC derivatives clearing or stepped out altogether in the last two years. Remaining futures commission merchants (FCMs) complain
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