CME and LCH.Clearnet pricing shapes clearing battle

07/31/2013 | Risk.net (subscription required)

CME Group's and LCH.Clearnet's differing margin rules could become reflected in fees to clear interest-rate swaps. The different structures of the central counterparties could have implications for futures commission merchants, if banks stop absorbing the costs of trading. "If you look at the sum of the structural costs as well as the marginal costs of clearing, there are already material differences between CCPs in terms of the funding structures we have," said Piers Murray of Deutsche Bank.

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