Date: Jan 31, 2017
Whitepaper: The Changing Face of Client Derivatives Clearing
Contango has just released a special report looking at the changing face of client derivatives clearing as regulation, higher capital requirements and constraints on revenue models are changing the way banks in particular look at their clients.
LONDON, January 31 - Contango has just released a special report looking at the changing face of client derivatives clearing as regulation, higher capital requirements and constraints on revenue models are changing the way banks in particular look at their clients. In line with a trend that started some years ago, the number of derivatives clearing firms is shrinking further. Banks must earn more from their clients or be faced with exiting the listed derivative brokerage business (unwelcome), accept lower returns on capital utilised (unlikely) or be more picky about the types of clients that they serve (likely). As a result a number are ‘reassessing’ their client base and some clients just don’t fit any more.
Our whitepaper looks at the various choices on offer for these “unloved” clients, with a particular emphasis on the response from clearing houses and a high-level overview of the route to self (or direct)-clearing.
The report can be downloaded for free here: contango-clearing-whitepaper.pdf
Contango was founded in 1999 by Managing Director, Clive Furness. The company has developed into one of the world’s leading independent commodities and derivatives consultancies, counting the world’s leading exchanges, investment banks, technology companies and clearing houses as clients. Contango’s deep product expertise underpins the delivery of solutions (both business & technology) throughout the trade lifecycle across all centrally cleared asset classes.
Clive Furness, Managing Director, Contango – email@example.com +44 7931 372586; Clare Black – Director, Research, Contango – firstname.lastname@example.org +447796262976; Richard Wilkinson, Director, Post Trade Solutions, Contango - email@example.com +44 7912 693258