GFI Group and Icap have announced a joint development of
clearing services for OTC credit and interest rate derivative
products with The Clearing Corporation (TCC).
The announcement was further evidence of the growing trend
among large OTC participants to develop or use more OTC
clearing facilities. The plan, which also included GFI and Icap
taking a minority ownership stake in TCC, would allow market
participants to net offsetting transactions and improve
settlement times found in OTC markets.
The deal has been considered a major boon for TCC, which has
been written off by many in the futures industry after its
major customer, Eurex US, failed to attract significant volume.
Brett Paulson, president and CEO of TCC, told FO Week
that the clearinghouse had been upgrading its technology in
recent months to handle more flexible contracts such as OTC
interest rates and credit derivatives.
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