NYSE Euronext's merger with Deutsche Börse would have plugged it into Eurex Clearing, the German exchange's CCP.
If there is a case for one CCP in Europe, or at the very least for a system of interoperability, there is one on a world level too.
"Why double their number?"CCP clearing may also impose greater demands on cash for businesses that currently use OTC derivatives.
Even the benefit of netting within a single class of derivatives is impaired when more than one CCP starts up in the same market, which is precisely where things are heading.
It acts as the central counterparty (CCP) for all shares traded on both the NYSE and the Nasdaq, and registers changes of ownership.
The most urgent requirement is to have a Europe-wide CCP.
Moreover, today's shrinking information-technology budgets will not stretch to developing pan-European compatibility.Real savings, on the other hand, are being achieved by exchanges offering access to a central counterparty (CCP).
Now it will work on making NYSE Liffe Clearing, which clears the trades on London's Liffe futures exchange, a full CCP.
Hence the enthusiasm of many big investment banks for a market like an "hourglass": trades from different exchanges would be funnelled through a single central counterparty (CCP).
We're increasingly getting a polarised, viciously divisive, intellectually bankrupt, wildly irresponsible populism that lives up to every negative caricature of multiparty democracy that a CCP ideological hack could dream up.
But it was not until September 1937, after the Sino-Japanese War had begun, that the Nationalist government formally agreed to a policy of cooperation with the CCP.
