The Clearing Corporation has completed a restructuring that resulted in 17 shareholders owning the company, including 12 global dealers, three inter-dealer brokers, Eurex and ICAP. The new board of directors had not been announced as of early January. In addition to offering exchange clearing services, the company is working with the Depository Trust & Clearing Corporation to launch OTC clearing services for the $50 trillion worldwide Credit Default Swaps (CDS) market in early 2008.
“The transformation of CCorp into a major, centralized clearinghouse for OTC products is an extremely significant industry event,” said CCorp Chairman Michael Dawley in a release.
Currently CCorp provides clearing services for Eurex, the U.S. Futures Exchange, the Chicago Climate Exchange and recently announced that it will provide clearing for the Sydney, Australia based Financial and Energy Exchange. Also noteworthy is that six of the shareholders, including Bank of America, Credit Suisse, JP Morgan, Deutsche Bank, Citigroup and Merrill Lynch are members of the “consortium of 12,” a group of investment banks, hedge funds and technology providers that have banded together to launch a new, as yet unnamed futures exchange. The odds of CCorp clearing for the new entity are pretty good.