Then you need to account for wire sales through clearing houses like FTD or Teleflora.
If so did such an arrangement effectively bar access to the market for other clearing houses?
New regulations require that derivatives trading should go through exchanges and be cleared through clearing houses.
The lower price reflected new European rules requiring clearing houses to hold more capital, the companies said.
Mr McLaughlin said all insurance companies were dealing with a small number of clearing houses in Northern Ireland.
Clearing houses enable the trading of shares between two parties, charging a fee to guarantee the sales should one side default.
Firms and clearing houses need to look at their complete counterparty risk, and the only way to do that is in real-time.
FORBES: Quartet FS Helps Financial Risk Management Move To Real Time
The new rules aims to reduce risk when trades go through clearing houses by standing between and guaranteeing both sides of each trade.
So, for example, the European Central Bank (ECB) couldn't demand that all financial clearing houses that deal in euros be located in a eurozone economy.
By requiring clearing houses to hold more money in reserve, the authorities hope to protect such firms against a major customer hitting a financial crisis.
There are, for instance, already plans for clearing houses for CDSs.
Clearing is trying to take advantage of the trends coming out of the financial crisis, in which more products are going to be put into clearing houses.
Identify and disseminate information about computer systems security holes, with CERT and the U.S. Federal Bureau of Investigation (FBI) National Infrastructure Protection Center serving as clearing houses.
The new regulation is a part of the Dodd-Frank financial reform act, under which the Commodity Futures Trading Commission (CFTC) proposed rules for how OTC derivatives clearing houses should be regulated.
One clear difficulty springs up from the second invesigation to be conducted by the EC is that regulators had strived to have over the counter (OTC) derivative products settled through international clearing houses.
Walter Lukken: New York Portfolio Clearing is trying to take advantage of the trends coming out of the financial crisis, in which more products are going to be put into clearing houses.
Euronext, a continental stock exchange that offers central counterparty and netting services via its clearing house, Clearnet, says it is happy to discuss partnerships with other European clearing houses to find a pan-European solution.
Demand for clearing transactions are expected to increase over the next few years as regulators force banks and other parties to channel trades through regulated clearing houses to ensure their risk positions can be better monitored.
As now, anyone paid by cheque will deposit it in their bank, to be sent on to various clearing houses, which route the cheque back to the issuer's bank for payment approval and the transfer of funds.
However, the deal is yet to be finalised, as the LSE Group is trying to renegotiate terms of an initial agreement made in April, prompted by new European rules that require clearing houses to hold more capital.
The CFTC also proposed to limit the ownership of clearing houses, exchanges and trading systems by banks and major swaps dealers to 20%, which the banks are disputing as they have economic interests in the controlling the derivatives trade.
Exchanges such as CME Group, Nasdaq OMX and NYSE Euronext are lined up to get a piece of the over-the-counter (OTC) derivatives market as new regulations will require derivatives trading to go through exchanges and be cleared through clearing houses.
The derivatives market will continue to grow with the growth in technology and algorithmic trading techniques which will push trade volume higher and more and more of this trade will go through an exchange or at least be tracked better using clearing houses.
Even the 10 year Treasury at a yield of 1.50% or 1.85% or 2% looks to be a bubble since the Fed itself is acquiring two-thirds of the newly marketed government debt alongside accumulation from pension funds, insurance companies, clearing houses and family offices.
These then morphed into "banks for bankers" - clearing houses which would mop up liquidity among the middle and upper classes and spread it through the private banking system (in the lobby of the Bank of England there is a nice painting of the English bourgeoisie queuing up at Threadneedle Street on Dividend Day by George Elgar Hicks).
Moving derivatives trades to clearing-houses mitigates the effect of a default of a clearing member (Lehman Brothers' cleared trades were handled smoothly in 2008, for example).
There are several exemptions, including primary equity and bond issues, spot foreign-exchange deals and deals involving central clearing-houses.
In particular, online clearing-houses will be needed to record data on who is using what, and then to arrange suitable financial transactions.
Competition suits customers, but it also carries the risk that clearing-houses will water down standards on the amount of margin they demand, for instance to win deals.
应用推荐