The Clearing Corporation (TCC)'s clearing deal with Eurex
appears to be headed for a close vote by its shareholders and
questions are brewing about clearing costs and technical delays
in the clearing agreement.
Several TCC clearing members said there is mounting pressure
from sole proprietors and some mid-sized firms to vote down the
agreement between TCC and Eurex. The deal, signed last month by
TCC's board, essentially would give Eurex a 15% equity stake
and seat on the clearing house's board, and reorganize TCC's
overall business model. TCC sent a proxy statement on 24
September to all 87 stockholders, which is a mix of large FCMs,
mid-sized firms and sole proprietors.
The vote, scheduled for 23 October, could be close because
it is on a one-firm, one-vote basis. Therefore, a sole
proprietor has just as much voting power as Merrill Lynch.
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