In-depth introduction: Clearing incentives

Price hikes at Goldman Sachs show how much pressure FCMs are under

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One of the 22 economists who recently spent a year and a half weighing up the commercial pros and cons of clearing told Risk last month it was difficult to get good information on the fees charged by futures commission merchants (FCMs) – clearing house members that extend access to the rest of the market.

"It was not clear to us what FCMs would charge their clients to clear trades," he says. The Derivatives Assessment Team (DAT) report, published in October, concluded that clearing incentives

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