OTC earthquake shaking up futures clearing

Stick or twist

Jerome Kemp, Citi

Like any earthquake, the advent of mandatory clearing in over-the-counter derivatives markets is shaking a lot of other things up as well, including the futures clearing landscape. As clients go looking for a firm to handle their OTC business, many are also reviewing their choice of listed derivatives clearers – a rare event for relationships that can date back a decade or more – because of cost, operating and margin efficiencies that may be attainable when clearing both types of

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