The re-introduction of competition in the US equities clearing space will not create additional complexity and cost, according to Brian Hyndman, senior vice president of transaction services at US exchange group Nasdaq OMX.
Nasdaq OMX is planning to launch a new US equities clearing facility, the Nasdaq Clearing Corporation (NCC), in the second half of 2009.
“We have spoken to all the major customers and their view is that this is not a step backward but a step forward,” Hyndman told theTRADEnews.com. “They welcome the competition and, given the technology advancements over the years, they don’t think this is going to add any inefficiencies to the current process.”
Launching NCC will put Nasdaq OMX in direct competition with the Depository Trust & Clearing Corporation (DTCC) which, through its subsidiary, the National Securities Clearing Corporation, provides clearing for almost all equity, corporate bond and municipal bond, exchange-traded funds and unit investment trust trades in the US.
Stuart Goldstein, managing director, corporate communications at the DTCC, told theTRADEnews in January that US brokers had shunned the multiple clearing model 20 years ago because of the need to maintain infrastructure to communicate with multiple clearers and have margin in more than one place.
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