The margin efficiency firm had been working toward a first quarter launch
Nascent margin firm NetOTC has put its
over-the-counter (OTC) derivatives margin service on hold
indefinitely and plans to reduce its staff to "practically
zero" due to the lack of provision for the risk-reducing system
in new margin rules which take effect in September this
The decision will see the company close
down for the "foreseeable future," chief executive officer
Roger Liddell told FOW Thursday, with the
company’s 44 staff members set to be reduced to
"practically zero" once the firm has finished the technology
build out of its margin tool, a process which is expected to
take around two months.
The company had been working toward a
first quarter launch for its bilateral margin management
service – which relies on a pooling structure - but
CEO Liddell told FOW: "Unfortunately the rules in their current
form do not allow for this type of structure, so we have taken
the difficult decision to put our launch plans for the service
on hold indefinitely.
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