The move to central clearing will change the OTC market and with an end 2012 deadline for implementation there is a short time frame to define your response. For those who service customers in this market their is a need to redefine the customer proposition and how it will be serviced. The change in market structure might mean that the benefits of current trading strategies no longer justify the costs. In addition, the operational side of selecting and onboarding with a clearing agent will have its challenges, with demand for full-service central clearing likely to exceed supply.
This publication builds on our earlier buy-side survey of clearing services, as well as interviews with a number of clearing brokers. Contributors included Bank of America Merryl Lynch, J.P. Morgan, Deutsche Bank and Morgan Stanley. It is likely to be of interest to all OTC market participants.