Ability to use custodial accounts worries OTC clearing members

Custodial accounts worry OTC clearers

barriers

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

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

Switching CCP – How and why?

As uncertainty surrounding Brexit continues and the impacts of Covid-19-driven market volatility are analysed, it is essential for banks and their end-users to understand their clearing options, and how they can achieve greater capital and cross…

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here