Dealers at odds with CME over use of third-party marks

One major dealer says it may reassess CME membership, while others also raise concerns about the CCP’s willingness to allow clearing members to use third-party marks

A split has emerged between CME Clearing and some of its dealer members over the central counterparty's (CCPs) willingness to consider granting clearing membership to firms without internal trading desks, allowing members to instead outsource both pricing and default management capabilities to third parties.

Dealers argue that outsourced third-party pricing and default management services are unreliable in distressed situations and could potentially jeopardise the safety of the clearing house.

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