Buyside access to clearing threatened over FCM struggles

By Hazel Sheffield
15 Oct 2014

Access to clearing houses for the buyside may increasingly become limited as some clearing members, known as futures commissions merchants in the US, are struggling to turn a profit on their clearing offerings. This has resulted in some firms exiting such business entirely, and limiting the FCM’s with which buysiders can clear with.

A report published by TABB group this week showed that some FCMs, struggling to turn a profit, have been forced to renegotiate fee schedules after offering unrealistically low fees while setting up their over-the-counter business.

Some are adding additional margin to the straight transaction and maintenance fees incorporated ...

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