All Clear?
Despite a recent large increase in volumes, clearing for commodities remains a contentious issue, with little agreement on what the best business model should be, and insufficient standardisation, say market participants. Rachel Morison investigates
One of the biggest winners of the credit crisis is undoubtedly the system of clearing, with exchanges reporting a spike in volumes of cleared products. The IntercontinentalExchange (ICE) recorded an 11.5% increase in its cleared over-the-counter (OTC) energy contracts from the fourth quarter 2007 to the same quarter 2008. The Chicago Mercantile Exchange (CME), meanwhile, reports a 43% increase so
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