Clearing certainty: Hubs hit heavy weather

Limit-checking hubs are signing up users ahead of a possible October start for new trading platforms in the US – but some critics claim the hubs do not fix the problems they were supposed to. Peter Madigan reports

With just over a month until swap execution facilities (Sefs) can open for business in the US, it’s still not clear how users will know – at the point of execution – that their trades will be within the risk limits set by a futures commission merchant (FCM) and a central counterparty (CCP), and will therefore be accepted for clearing. Markit and Traiana claim to have the answer – both are launching new, centralised credit-checking facilities – and can point to public support from Sefs and FCMs