FT: US and Canadian clearers explore joint action

07 April 2011

Canadian Derivatives Clearing Corporation (CDCC) and New York Portfolio Clearing (NYPC) are exploring ways to clear Canadian market swaps jointly in a potential cross-border agreement that could allow G20 countries to meet their commitment to clear over-the-counter (OTC) derivatives.

The groups said they would explore links to create a venture which could solve an issue created by the G20 regulatory push for more clearing of OTC derivatives. CDCC is owned by TMX Group, operator of Canada’s largest bourse, while NYPC is a venture set up by NYSE Euronext and The Depository Trust & Clearing Corporation, a post-trade services group. The G20 has proposed tighter controls on OTC derivatives trading as part of moves to avoid a repetition of the recent financial crisis and strengthen regulation of global financial markets, and wants clearing of OTC derivatives under way by December 2012.

Full article (FT subscription needed) 

© Financial Times