Calypso Technology: No FCM, no problem
Self clearing may be the only viable option for derivatives users if FCMs step back from the business, warns Venkatesh Ramasamy of Calypso Technology – but direct CCP access comes with costs and obligations
Large global banks are falling out of love with the client-clearing business. At an investor day presentation on February 24, JP Morgan warned the economics of client clearing were "incompatible with capital rules in their current form". Fees must rise ten-fold to meet common return-on-equity targets for global banks, clearers warn. That leaves end-users, which are required to clear standard over
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