Futures Industry Association (FIA)'s plans to create a Centralized Capital Facility (CCF) is getting some mixed reviews (see FO Week, 23 June).
CCF was described by FIA president John Damgard as a service for futures commission merchants (FCMs) and their customers that "would be an effective means of providing portfolio margining to clearing members and their customers". CCF would also reduce clearing member capital requirements by recognising offsetting positions, and consolidating performance bond and guarantee funds.
Joe Murphy, president and ceo of Refco and vice chairman of FIA, admits CCF is "an ambitious project". He told FO Week that the idea is not to...