FCMs like look of common clearing but want details
Firms were cautiously optimistic last week about the
clearing linkage deal between Chicago Board of Trade (CBoT) and
Chicago Mercantile Exchange (CME).
Most futures commission merchants (FCMs) want to see more
details before forming a final opinion, but the concept of
clearing two exchanges under one roof is appealing.
Chris Malo, senior vice president and director of Cargill
Investor Services in Chicago, told FO Week that the
clearing link offers capital efficiencies for FCMs, cross
margining benefits and a cost savings on back office
"We haven't seen the details but there appears to be a
significant opportunity for FCMs to reduce the amount of
capital we have in the two organisations separately," Malo said
of the CME clearinghouse and Board of Trade Clearing
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