The Clearing Corporation
From MarketsWiki
| The Clearing Corporation | |
| |
| Founded | 1925 |
|---|---|
| Headquarters | Chicago |
| Key People | Michael Dawley, chairman; Kevin McClear, COO; Brett Paulson, CIO |
| Products | Clearing services |
| Web site | www.clearingcorp.com |
The Clearing Corporation (CCorp) is a user-owned clearinghouse for exchange-traded derivatives and over-the-counter products, utilized by the Chicago Climate Futures Exchange and the US Futures Exchange.
Formerly known as the Board of Trade Clearing Corporation (BOTCC) and founded in 1925, CCorp ranks as one of the world's oldest clearing platforms.
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Recent News
On May 29, 2008, CCorp and The Depository Trust & Clearing Corporation (DTCC) signed an agreement to provide central counterparty services (CCP) for the over-the-counter (OTC) derivatives market. Under the agreement, CCorp will offer its netting and risk management processes to its members for OTC trades, and DTCC will provide the capabilities of its Trade Information Warehouse (Warehouse). The Warehouse is the industry's only global repository and centralized post-trade infrastructure for OTC credit derivatives. The agreement with DTCC will allow CCorp members to use CCorp as the central counterparty (CCP) guarantor for OTC contracts in credit derivatives while continuing to utilize the Warehouse as the "golden" record for net open positions and post trade processing. The launch of this initiative is planned for the 3rd quarter off 2008.[1]
History
The Board of Trade Clearing Corporation was founded by the Chicago Board of Trade membership on September 3, 1925[2].
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The BOTCC changed its name after the Chicago Board of Trade (CBOT) moved its clearing business to the Chicago Mercantile Exchange's clearing organization in 2003[3]. This move was exacerbated by BOTCC's agreement to clear Eurex US business, at that time thought to be in direct competition with the CBOT due to the duplicate products being offered to traders by both exchanges.
On December 20, 2007, CCorp announced a restructuring of its ownership to 17 stockholders, including 12 dealers, three inter-dealer brokers and Eurex[4]. It also announced plans to enter the OTC market, initially through credit default swaps.
Under the restructuring, all shares in CCorp, which remained a Delaware Corporation, are held by:
- Bank of America
- Bear Stearns
- Citigroup
- Credit Suisse
- Deutsche Bank
- Goldman Sachs
- JP Morgan
- Lehman Brothers
- Merrill Lynch
- MF Global
- Morgan Stanley
- UBS
- Eurex
- GFI Group
- ICAP
- Creditex Group
- Markit Group
Key People
The Clearing Corporation does not currently have a president or CEO. Kevin McClear is the top ranked officer of the company and is the COO. He previously served as general counsel, vice president and secretary of the Clearing Corporation. Brett Paulson, previously the the COO and president is now the CIO, a position he held from 2002 to 2005.[5][6]
Previously, Dennis Dutterer was a long-serving CEO and president of the Clearing Corp, where he worked for 20 years.[7]
References
- ↑ CCorp and DTCC Announce Credit Default Swap Clearing Facility. www.clearingcorp.com. Retrieved on June 9, 2008.
- ↑ Official history. CCorp. Retrieved on October 23, 2007.
- ↑ BOTCC seeks investors after Chicago quits. Financial Times. Retrieved on January 16, 2008.
- ↑ Press release. The Clearing Corporation. Retrieved on Dec. 21, 2007.
- ↑ About Us. The Clearing Corporation. Retrieved on January 30, 2008.
- ↑ Clearing Corp Announces New Officers. The Clearing Corporation. Retrieved on January 30, 2008.
- ↑ Dennis A. Dutterer. Dubai Mercantile Exchange. Retrieved on January 30, 2008.
