Risk magazine editor Duncan Wood makes a good point in his article The invisible incentives of clearing (subs. required) - the FSB / BIS ignored leverage ratio effects in concluding that incentives are in place for clearing both on banks self-clearing their trades and on FCMs clearing trades for clients. In this post I look at the FCM capital cost problem and whether changes to bank capital rules alone can deliver an economically sustainable future for FCMs.
What Customers Should Look Out For in FCM Clearing Agreements | Sherri Venokur
For Clients in the US market, putting in place an FCM agreement is not to be taken lightly. Lawyer Sherri Venokur (http://svderivatives.com) explains how to handle IM amounts, affiliate issues, limitations of liability and indemnification, notice provisions and termination.
If you're on the buy-side the survey below from Risk Magazine gives some interesting insights into why firms choose a particular Clearing Broker or FCM, and who's leading the race to scoop up Client Clearing business.