The Clearing Corporation (TCC)'s clearing deal with Eurex appears to be headed for a close vote by its shareholders and questions are brewing about clearing costs and technical delays in the clearing agreement.
Several TCC clearing members said there is mounting pressure from sole proprietors and some mid-sized firms to vote down the agreement between TCC and Eurex. The deal, signed last month by TCC's board, essentially would give Eurex a 15% equity stake and seat on the clearing house's board, and reorganize TCC's overall business model. TCC sent a proxy statement on 24 September to all 87 stockholders, which is a mix of large FCMs, mid-sized firms and sole proprietors.
The vote, scheduled for 23 October, could be close because it is on a one-firm, one-vote basis. Therefore, a sole proprietor has just as much voting power as Merrill Lynch.
Because of the contentious relations between the sole proprietors...