In a bid to become a major force in the post-trade OTC derivatives markets, the Clearing Corporation has completed a major restructuring that transfers ownership to 17 stockholders, including 12 major global dealers, three leading inter-dealer brokers, derivatives exchange Eurex and Markit Group.
The Delaware-based CCorp says the new ownership structure will enable the company to expand its product line to include a centralised clearing facility for a number of over-the-counter (OTC) derivatives products.
Under the restructuring, all shares in CCorp, are now 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, and Markit.
The company says that in early 2008, it will begin working with The Depository Trust & Clearing Corporation (DTCC) to act as central counterparty for credit default swap transactions registered within DTCC's Deriv/Serv Trade Information Warehouse.
Michael Dawley, chairman of CCorp, says: "The transformation of CCorp into a major, centralised clearinghouse for OTC products is an extremely significant industry event that will serve to enhance the transparency of products such as credit default swaps."
He says the Corporation will continue to serve as an independent clearinghouse to traditional exchange clients, and we will continue to operate the 'Global Clearing Link' for US customers trading on Eurex.
The Clearing Corporation has been scouting for new business since the Chicago Board of Trade switched its clearing operations to the neighbouring Chicago Mercantile Exchange following CCorp's dalliance with Eurex in the US. In December last year, GFI and Icap joined Goldman Sachs, Merrill Lynch and Eurex in taking minority stakes in CCorp.