OTC Derivatives Clearing Summit: Some FCMs charging five times more than others, says panel

Fees charged by clearing members can vary wildly – and low-cost providers may try to terminate relationships if they prove unprofitable, panellists warn


The prices charged by clearing members for client clearing services can vary dramatically, with some quoting fees that are five times higher than others, according to speakers at Risk's over-the-counter derivatives summit in New York earlier this week.

With many of the regulations related to clearing only recently finalised, a standard fee model has yet to emerge, speakers said. For instance, the Basel Committee on Banking Supervision only published interim rules on the capitalisation of bank

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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…

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