The drive for mandatory exchange trading of standardised derivatives means the major exchanges will be the biggest beneficiaries of the MiFID review, a senior London-based consultant told FOi on Thursday December 9.
“All of this means more business for them at the end of the day,” the source said, adding that both newly exchange-traded contracts and instruments that remain over the counter would have to be cleared. “Why do you think they're scrambling to build a clearing house?” he added, alluding to recent moves by the London Stock Exchange and NYSE Liffe Euronext to split from LCH.Clearnet and clear products in-house.
“Clearing is seen as a business now, in a way that it just wasn’t 15 years ago. When clearing was seen as a utility, there was no real incentive to...