Hudson Depository Clearance Center Supports New Regulatory Structures
Online, March 13, 2013 (Newswire.com) - The purpose of this process is to provide a wider selection of clearing broker models, better transparency and open access to centralized counter-parties. Increased regulation of the world's derivatives markets have become increasingly important. The United States has already begun phasing in new rules this winter.
The common theme of the regulatory changes include enhanced reporting and registration requirements. As many traders are now exclusively using electronic execution platforms, more consistent rules need to be in place. When selecting providers to meet the terms of the new regulations, clients should hold to a clear strategy across the front, middle and back office.
Regulations are transforming the entire life-cycle of derivatives trades. Execution will move from bilateral agreements to the latest generation of electronic platforms. Clearing is becoming its own service with a separate cost structure. The clearing broker's financial power and business strategy should be of the utmost concern in their selection process.
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