September 9, 2011

CCP Ownership

With the continuing discussions around the ownership of LCH, it is useful to realise that there is a common ownership strand:

  • OTCDerivNet have a relationship with SwapClear, which involves fourteen of the large dealers
  • Markit has shareholders, also amongst the fourteen
  • The Clearing Corporation, which became ICE Clear, has ownership from amongst the fourteen, and Markit
A little known press release (here)

The Clearing Corporation Announces Restructuring and Investment by Global Financial Institutions Focused on OTC Derivatives Clearing

Initiative establishes a Central Clearing Counterparty facility for OTC Derivatives

Leading financial institutions, dealers and service providers form new CCorp shareholder base
Chicago,  December 20, 2007 – The Clearing Corporation (CCorp) today announced the completion of a corporate restructuring that results in ownership of CCorp by 17 stockholders, including 12 major global dealers, 3 leading inter-dealer brokers, Europe’s largest derivatives exchange, and the foremost OTC service provider. In addition to continuing to provide traditional clearing services to multiple exchanges and marketplaces, the reconstituted CCorp will expand its product line to include a centralized clearing facility for a number of over-the-counter (OTC) derivatives products.

Under the restructuring, all shares in CCorp, which remains a Delaware Corporation, are now held by:

Bank of AmericaBear StearnsCitigroup
Credit SuisseDeutsche BankGoldman Sachs
JP MorganLehman BrothersMerrill Lynch
MF GlobalMorgan StanleyUBS
EurexGFI GroupICAP
Creditex GroupMarkit Group

Beginning in early 2008, CCorp’s first new OTC-related clearing product will be in the $50 trillion worldwide Credit Default Swaps (CDS) market. CCorp plans to work closely with The Depository Trust & Clearing Corporation (DTCC) by acting as central counterparty for CCorp’s eligible clearing participants with respect to certain Credit Default Swap transactions registered within DTCC’s Deriv/SERV Trade Information Warehouse.

Michael C. Dawley, chairman of CCorp, said the following: “The transformation of CCorp into a major, centralized clearinghouse for OTC products is an extremely significant industry event that will serve to enhance the transparency of products such as Credit Default Swaps. We are delighted that the world’s foremost participants in OTC trading and support are joining us in this effort.”

“Although CCorp will concentrate on greatly expanding our OTC clearing services,” Dawley said, “we will continue to serve as an independent clearinghouse of choice to traditional exchange clients, and we will continue to operate the ‘Global Clearing Link’ with Eurex, which enables US-based customers to clear their trades on Eurex through CCorp.”

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