On the brink of merging with brokerage Calyon, Natalie Coomber spoke with chief operating officer of what was Fimat and is now Newedge, at FIA expo to get his take on the topics of the day
Can you share the latest merger
TK: Im afraid I am not supposed to
talk about it and therefore can not give any details.
Picking up on the themes of the
conference, the importance of clearing seems to have been
stressed heavily. Fimat has recently been involved in the RV
default, so how much risk do non clearing members pose to
TK: With any customer that we absorb part
of what we are paid for is to be an intermediary between the
clearinghouse and the clients. So, we always face some risks.
But we have a robust risk department in each geographical zone
and a centralised risk function in the corporate headquarters.
After this meeting I have to rush off to another in our credit
department! I think we take the process of evaluating our
clients very seriously. It is certainly the case that the
exchanges seem to like having us as the intermediary between
them and the client to minimise that credit risk exposure.
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