The Future of European Clearing Houses The inaugural Post-Trade Forum debate took place in June, 2011 at the London Stock Exchange and included contributions from; Iain Saville CBE, Kevin Milne, Director of Post Trade Services, London Stock Exchange Group, Henry Raschen, Head of Regulatory & Industry Affairs for Europe, HSBC Securities Services and Anthony Belchambers, CEO of The Futures and Options Association, with a number of questions and views from the floor. The debate was held under the ‘Chatham House Rule' with an audience of senior managers, drawn from many different areas of expertise and with varied experiences, from a cross-section of the market, enabling a wide-ranging industry debate, covering a broad sector of the securities markets. The debate has been split into two papers which report on the topics discussed during the debate, which have been grouped for easy reading and express the personal opinions of all participants. Issues covered in part 1 Fragmentation Consolidation Mutuals Silo, Mutual or Other Models, for Profit or Not, which is right? CSDs/CCPs & Interoperability Competition Which model is most beneficial to the End Investors? Issues covered in part 2 Central Counterparties/Clearing Houses Central Bank Money Collateral Issues Cost Issues Portability Risk Management Problems in the Derivatives Markets The Regulators T2S Summary The report on this debate is only available to attendees of the debate or employees of regulated financial services firms who belong to the Post Trade Forum Group on LinkedIn. Entry to the Post Trade Forum group is free. To join the group click here Click here to log in and access these reports

Forthcoming Post Trade Forum Events in 2012 Next Post Trade Forum - 14 April: Operational Risks: Are Clearing Houses becoming a risk concentrator? The myriad of Clearing Houses and CSDs in Europe have caused fragmentation of collateral with OTC entering the picture, increasing the value within clearing operations, there is growing concern that a Clearing House could fail. If Clearing House consolidation gathers pace will there be a greater concentration of risk directly leading to an increased risk of huge numbers financial services firms being impacted and failing? How should firms respond to the potential calamity of Clearing House failure? Are there actions they should be taking now to minimise operational risks in the Post Trade areas? Disclaimer All information in these reports has been checked to the best of the author's and publisher's ability, the contents of this report are believed to be correct at the time of publication, but cannot be guaranteed. As such B.I.S.S. Research and Finextra can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect and do not accept any liability for loss arising from decisions based on them.

Tweet