Customer Focus / Inform |
|
Tel: 0044 (0) 207 596 2765 |
|
¨ Editorial With competition opening up at the trading level, and change and benefits stabilising, John Luff our founder and editor, moves our focus to the post trade landscape, using this issue to inform readers of the opportunities and challenges facing providers and Users of clearing services. ¨ Transaction Cost Analysis: Exposing the cost of clearing We look at how broker dealers are using transaction cost analysis models to potentially identify significant six or seven figure savings on the cost of trade. Specifically, they are exposing the impact of clearing as a percentage of the overall cost. ¨ Clearing: Time for price transparency and a level playing field The current charging mechanism for clearing does not clearly associate a risk premium based on value of order, but relies on charging for what most would consider “no touch” and consequently “low cost” clearing of executions. This leads to a lack of transparency over trade cost which is especially felt by broker dealers trading smaller orders, creating an unlevel playing field when compared to participants trading larger orders. Is it time for CCPs to change the way they charge?. ¨ CCP Interoperability: The winners and losers, or will the regulator ultimately decide? With the regulator due to pronounce their approach to CCP interoperability over the next few weeks, we look at the likely winners and losers from a more open and competitive clearing market.. |
