New technology and hiring costs to keep pace with regulatory obligations behind fee hike at Outsource Clearing House.
Outsource Clearing House says that increasing regulatory requirements and the costs of hiring additional staff to implement them is behind a fee hike that will see the company raise its fee to clear trades with anything from 1 to 500 contracts from 5 cents to 8 cents.
The Asia-based clearing house is rapidly developing a growing roster of some of the region’s most active brokers and securities firms as clients thanks to broader adoption of its proprietary TruClear system architecture.
Geraint Lloyd, chief operating officer at Outsource Clearing House says, “We held our fees down despite the huge outlay we made on making TruClear one of the most robust systems in the world but, somewhat predictably, economic realities are difficult to ignore.”
“Some of the new regulatory requirements being implemented in advanced markets within which many of our clients transact business require us to ask that they hold more surplus and capital in order to satisfy rules on counterparty risk,” he added.
Outsource Clearing House has flourished since the days of the global financial crisis as calls for the multi-trillion dollar derivatives market to be regulated and counterparty risk tamed after AIG, the American insurer bailed out to the tune of $85 billion by the US government. The firm clears trades for more than 40 high profile clients in the Asia Pacific region.
“We recognize that this increase will be unpopular with our clients but, unfortunately, it’s the price we must all pay for a what is essentially a stronger, more robust environment in which to operate.
About Outsource Clearing House
Outsource Clearing House is a Derivatives Clearinghouse. Our offering is focused on providing a reliable
service against transparent and predictable pricing using robust risk management systems.
The company was established as a Chinese Derivatives CCP to serve Multi-disciplined brokerages.
Outsource Clearing House has its registered office in Beijing, People’s Republic of China and is regulated in China by the People’s Bank of China.
Contact Outsource Clearing House:
Fangyuan Building, Floor 29
B56 Zhingguancun, South Street
Beijing
China
+861084181980
http://www.outsourceclearinghouse.com
press@outsourceclearing.com