CME abandons buy-side direct clearing initiative
CCP shutters plan after feedback from regulators and market participants
The Chicago Mercantile Exchange has withdrawn an official request to US authorities which would have allowed buy-side firms to clear trades for their own account rather than relying on a clearing broker.
The firm, which clears both listed and over-the-counter derivatives for a range of asset classes, decided to scrap its so-called direct funding participant (DFP) proposal in September following a period of review with market participants and its chief regulator, the Commodity Futures Trading
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