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.”