... Association (ICMA)
Clearing Services for
Global Markets
A Framework for the Future Development
of the Clearing Industr y
Tina P. Hasenpusch
xxi List of figures
8.16 Transaction Cost Impact Matrix for ... many changes afoot in the
areas of exchange regulation and clearing. ’
HARVEYL.PITT
Chief Executive Of cer of Kalorama Partners and former Chairman of...
... definition of clearing.
Outlines value-added of clearing for individual market
participants, for capital markets as a whole and
according to asset classes.
Defines the ‘Value Provision Network’ of clearing ... Clearing Services for Global Markets
VALUE-ADDED CLEARING SERVICES
Collateral
Management
NettingNovation
Risk
Management
Cash
Management
BASIC CLEA...
... charging a separate clearing
39
In such cases, line fees are part of the service provider charges and not part of the clearing house charges.
92 Clearing Services for Global Markets
necessary. As the ... in
bilaterally cleared markets.
61
A correct calculation of the cost of capital would
thus also have to take these aspects into account. Again, due to the...
... interviewed clearing member representative.
35
Trading arcades are firms that offer individual traders access to trading platforms and clearing services.
Arcades offer traders a place where they can work ... clearers have enough capital available;
r
clearing houses can serve as a cheap form of custody; and
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clearing houses pay interest on most collateral.
The collateral-rich...
... vital. As the analysis has shown, the organisa-
tion of derivatives clearing could serve as a role model for other parts of the
European market infrastructure.
As outlined above, to evaluate the ... outlined above, calculat-
ing, analysing and understanding the true cost of capital related to clearing
is difficult for various reasons. When asked to assess the cost...
... connection
of new marketplaces as a means to increase scale are the level of automation
and the use of standard interfaces. The higher the level of automation and
the more common the use of standard ... other parts of the transaction value chain. The
trust and collateral management effects can positively impact the liquidity
and allocation of capital. Negativ...
... those of the partnering clearing houses. Nonetheless, these dynamics ultimately shaped the benefits
and drawbacks of the clearing link; they thus play a crucial role for the analysis of the network ... only allowed to clear their own transactions, Clearing
Members can clear their own transactions, their clients’ tr ansactions and those
of affiliated exchange particip...
... cannot become clearing members of ECAG. Prior to the
introduction of Phase I of the GCL, they therefore had to employ a clearing intermediary that was a
member of ECAG to clear their t rades executed ... already established a global presence that enables them to clear internally
all of the most important marketplaces worldwide.
The global clearers already had...
... from the different stakeholders. Furthermore,
there are many kinds of clearing link initiative, and not all of them can serve
to increase the efficiency of European clearing. Therefore, the parameters ... partnering clearing houses fall short
420 Clearing Services for Global Markets
concentration patterns, it makes strategic sense for managers to focus on these
par...
... transaction costs of deriva-
tives clearing services are defined as the total costs a customer
(i.e. clearing member) has to bear for using a certain clearing
440 Clearing services for global markets
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The ... this
impact.
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If at any point in the future, European rules and regulations are harmonised,
and processes are standardised, a reviewed analysis of...