CME fears futures clearing retreat
At least three firms have already abandoned their swaps clearing plans, and CME worries the leverage ratio could see futures clearers avoiding certain contracts, reducing client numbers or exiting the business altogether
The incoming leverage ratio in the US could prompt futures commission merchants (FCMs) to stop clearing certain futures products or even shut up shop completely, warns Suzanne Sprague, executive director for risk management at CME Group in Chicago. That would extend a trend that has already seen three firms retreat from over-the-counter derivatives clearing.
"We are concerned clearing member firms will have to exit the business or reduce the number of firms they clear for because of the binding
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