GFI and Icap acquire stakes in the Clearing Corporation

Interdealer brokers GFI and Icap are to acquire undisclosed minority interest stakes in the Chicago-based Clearing Corporation under plans to expand their participation in over-the-counter derivatives trading.

  0 Be the first to comment

GFI and Icap acquire stakes in the Clearing Corporation

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

The Clearing Corporation has been scouting for new business since the Chicago Board of Trade switched its clearing operations to the neighbouring Chicago Mercantile Exchange following CCorp's dalliance with competitive Swiss-German exchange Eurex.

GFI and Icap say they will work with CCorp to develop new clearing services for credit and interest rate derivatives. The establishment of a centralised clearing mechanism should allow market participants to more effectively net offsetting transactions, they say, while boosting capacity through the elimination of backlogs and lengthy settlement times in the OTC markets.

Michael Gooch, chairman and chief executive officer of GFI, says: "Ultimately, we believe that centralised clearing will further expand the market for OTC derivative products through added settlement efficiency and reliability."

Other investors to have taken a stake in CCorp - viewed as a potentially valuable commodity as an independent clearing operation - include Goldman Sachs, Merrill Lynch and Eurex.

Sponsored [New Report] Managing Fraud Risks with Synthetic Data: A Practical Approach for Businesses Services Industry

Comments: (0)

[Webinar] PREDICT 2025: The Future of AI in the USFinextra Promoted[Webinar] PREDICT 2025: The Future of AI in the US