U.S. Derivatives Bill Bars Dealers From Owning Clearinghouses
By Dawn Kopecki
Oct. 16 (Bloomberg) — Derivatives legislation approved by a U.S. House panel yesterday would prohibit swaps dealers such as Goldman Sachs Group and JPMorgan Chase & Co. from collectively owning more than 20 percent of a clearinghouse.
“An inherent conflict exists between broker dealers and clearinghouses and exchanges,” Representative Stephen Lynch said when he introduced his provision on Oct. 14. “Brokers and dealers should not be able to capture trading and clearing intermediaries.”
A clearinghouse, such as CME Group Inc.’s, acts as an intermediary between banks and their customers, guaranteeing trades, requiring margin and collecting collateral.
Read Full Story : www.bloomberg.com
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