Ability to use custodial accounts worries OTC clearing members

Custodial accounts worry OTC clearers


Following the collapse of MF Global last year, and disappearance of an estimated $1.6 billion in customer funds, it would take a brave organisation to argue against sturdier protection for client assets - but that is exactly what some banks are doing. Dealers warn that giving clients greater security could mean a corresponding loss of protection for firms that provide clearing services, and argue a balance needs to be struck.

The argument is about third-party custodial accounts. When the US Comm