“There is still debate around the economics of onshore clearing. If local clearing is mandated in every jurisdiction, the cost of building the infrastructure, the joining fees and default contributions, and the inefficiencies of joining multiple CCPs could potentially act as a tax on the local system.”
“There is still debate around the economics of onshore clearing. If local clearing is mandated in every jurisdiction, the cost of building the infrastructure, the joining fees and default contributions, and the inefficiencies of joining multiple CCPs could potentially act as a tax on the local system.”
—Lee McCormack, client clearing business development manager at Nomura in London, gives his views on the potential challenges of clearing onshore with local CCPs as opposed to international CCPs.