Clearing has emerged in the post-crisis financial market as
the key battleground for modern exchanges and a clearing house
is now seen by many markets as a crucial strategic asset.
The LME became in September the latest exchange to take
control of the clearing of its own trades, when it moved all of
its open metals positions from LCH.Clearnet to LME Clear.
Trevor Spanner, the chief executive of LME Clear, said the
process went well, largely because it had been meticulously
He also said LME Clear will be crucial to the LME and Hong
Kong Exchanges and Clearing as the partners look to branch out
aggressively into commodities in Asia.
Another recent development has been the emergence of
specific segregated accounts to answer some of the issues that
emerged after the collapse of Lehman in 2008 and MF Global in
Exchanges have taken slightly different approaches to the
concept of a separately managed account while the US and Europe
also have their own separate interpretations.
Cross-margining is another relatively new development, at
least in Europe where Eurex Clearing became in May the first
exchange to launch this service.
Take-up has been relatively slow however, partly because
Europe decided to postpone the implementation of mandatory
clearing until 2016, much to the annoyance of Eurex
Cross-margining will take off but it is a question of
Lastly, this FOW Clearing Supplement looks at a new
generation of firms that are seeking to provide solutions to
some of the challenges posed by the new regulatory
here to access the FOW Clearing Supplement.