NFA and BOTCC enter collaborative B2B agreement

NFA and BOTCC enter collaborative B2B agreement

The National Futures Association (NFA) and the Board of Trade Clearing Corporation (the Clearing Corporation) have signed a memorandum of understanding to refer each other’s respective service offerings to third party electronic marketplaces.

“The capabilities of NFA and the Clearing Corporation provide a valuable solution to businesses that are in the process of developing electronic marketplaces,” says Dan Roth, NFA chief operations officer.

NFA is a congressionally authorised self-regulatory organisation for the US futures industry, which offers background/credit checks; trade practice and market surveillance; financial analysis and on-site review; risk management; and dispute resolution.

Through its clearing process, the Clearing Corporation provides central counterparty guarantee; trade management; margin processing; collateral management; risk management; and financial surveillance.

Dennis Dutterer, Board of Trade Clearing Corporation president and CEO, comments: “With the proliferation of new markets around the world, these types of arrangements make good business sense for all parties involved...Our relationship with NFA will result in a strong package of programmes and services that will provide emerging marketplaces a higher level of market integrity.”

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