The Germans look to be wrapping up a deal that folds the remnants of London International Financial Futures Exchange into Deutsche Borse as part of the deal everyone's talking about: namely the German exchange's proposed takeover of NYSE Euronext. The megamerger offers, in theory, a slew of benefits for marker participants the most obvious being that traders will have all the major European interest-rate futures on one platform using a single clearinghouse. That means easier cross-margining, and ultimately makes trading cheaper. Anthony Belchambers, CEO of the Futures and Options Association, believes that the emergence of such a massive clearinghouse could be the straw that convinces regulators to finally mandate the two pillars of clearing reform: Namely, that clearinghouses open their platforms to all corners, and that over the counter derivatives go onto clearinghouses.
Pages to are hidden for
"Merger mania and the clearing bonanza"Please download to view full document