Tag: clearing

Category 2’s Mad Dash to June Finish Line

There are only 33 days left before all the firms that the US Commodity Futures Trading Commission (CFTC) designated as Category-2 entities must central clear the majority of their over-the-counter (OTC) swaps trades and the next four or five weeks and it looks like it will be hellish for more than half of them. Do not…

Will Kill Switches Drive T+0?

The US cash equities market might reach same-day trade guarantees if the US Securities and Exchange Commission (SEC) follows suggestions of the industry working group formed to address to exchange-based kill switches. The working group, which consists of the major self-regulatory organizations (SROs) , leading market makers, The Financial Industry Regulatory Authority (FINRA) and the Depository…

Propping Up the US Dollar Through OTC Clearing

Maybe it was attending the FIA Expo NY yesterday or hearing a number of buy-side firms complain about having to post initial margin for their cleared OTC trades, which still sounds like an oxymoron to me, but I’ve wondered who really benefits from these cleared trades. To clear these trades through a central counter party, investors will…