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22 December 2010

FT: Derivatives clearing creates new battleground


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Derivate in Clearingstellen zu drängen ist ein wichtiger Bestandteil der von der G20 beschlossenen und nun umgesetzten Reformen, um einer Pleite à la Lehman Brothers vorzubeugen.


 Three months ago, the oldest bank in the world took a very 21st-century financial instrument and produced something new in global finance. Italy’s Banca Monte dei Paschi di Siena, founded in 1472, arranged for interest rate swaps – a type of derivative used to insure against rate fluctuations – to be processed through a London clearing house.

Banks have thus been busy re-engineering their derivatives broking units into bigger operations capable of handling listed and OTC derivatives together. Rich Repetto, exchanges analyst at Sandler O’Neill, says: “The banks are reorganising because they see a convergence of the futures and OTC business, especially from a clearing and servicing perspective.”




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