Non-bank FCMs unlikely to fill OTC gap

Capital burdens too great, say clearing specialists

Nomura is one of several banks to retreat from OTC clearing

Non-banks are unlikely to fill the gap left by retreating or constrained over-the-counter derivatives bank clearing members in Europe, according to market specialists.

Nomura, Royal Bank of Scotland, Bank of New York Mellon and State Street have all either retreated from OTC derivatives clearing or stepped out altogether in the last two years. Remaining futures commission merchants (FCMs) complain that the treatment of clearing exposures under the leverage ratio heavily restrains their capacity,

To continue reading...

You need to sign in to use this feature. If you don’t have a 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: