Futures Industry Association (FIA)'s plans to create a
Centralized Capital Facility (CCF) is getting some mixed
reviews (see FO Week, 23 June).
CCF was described by FIA president John Damgard as a service
for futures commission merchants (FCMs) and their customers
that "would be an effective means of providing portfolio
margining to clearing members and their customers". CCF would
also reduce clearing member capital requirements by recognising
offsetting positions, and consolidating performance bond and
Joe Murphy, president and ceo of Refco and vice chairman of
FIA, admits CCF is "an ambitious project". He told FO
Week that the idea is not to compete with exchange
clearing houses but to provide more flexible and practical risk
management for firms.
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