Exchanges Want Clearinghouse Position Cap Scrapped

Law360, New York (November 20, 2009, 6:01 PM EST) -- NYSE Euronext, LCH.Clearnet, BATS Global Markets and several other financial institutions have asked the House Financial Services Committee to scrap a proposal for a “rigid cap” on dealer ownership of over-the-counter derivative clearinghouses that are part of the overall financial regulatory overhaul, according to reports.

In a letter sent Monday to committee chairman Rep. Barney Frank, D-Mass., and ranking Republican Spencer Bachus of Alabama, the exchanges said "overly restrictive limits on swap dealer ownership will significantly hamper the development of derivatives clearinghouses and execution facilities," Reuters...
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