Month: April 2010

Central counterparties and central banks

Jeremy Grant has raised an interesting point in his Quick View in the FT Trading Room, where he discusses the debate in the US about whether central counterparties (CCPs) should have access to the Federal Reserve’s Discount Window in a crisis.

Posted in CCP, Clearing & Settlement, CSD, Rules & Regulation Tagged with: , , , , ,

The European Market in US Shares

Both the Turquoise and NYSE Arca Europe MTFs have announced new markets in US shares during European hours. Will these ventures work when attempts in the past have been unsuccessful?

Well perhaps. But liquidity on the MTFs could be thin until New York opens.

A further question is whether the clearing service offered by EuroCCP is enough for traders to regard the European MTFs as part of the same trading space as the US. Or is it necessary to go a step further and make European trading fully fungible with US trading through a single clearing process?

Posted in CCP, Clearing & Settlement, Exchanges Tagged with: , , , , ,

European Regulation of Clearing Houses

Jeremy Grant’s article in today’s Financial Times reports on the House of Lords’ view that European clearing houses should not be regulated by a EU authority since the EU would not be able to bail out a clearing house if

Posted in Clearing & Settlement, Rules & Regulation Tagged with: ,