With three major CCPs now offering direct clearing membership options, a new trend may be in motion
Two clearing houses have recently
introduced new clearing categories that edge towards direct
client clearing and the disintermediation of futures commission
merchants, but not all direct clearing memberships are created
CME Clearing and Eurex Clearing have in
recent months introduced new clearing categories that makes
clients of their clearing members direct counterparties of the
clearing houses with separate position, margin and asset
While this idea of direct buy-side
membership was put into practice by the Intercontinental
Exchange some years back, recent uptake of the concept might
suggest a growing trend.
The Chicago Mercantile Exchange (CME)
filed a proposal with the CFTC to launch a new type of direct clearing membership at
the end of July. With the new category of Direct Funding
Participant, a firm could clear trades directly with the CME
but would not have to contribute to the group’s
guarantee fund or be responsible in case of default.
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