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October 01, 2001
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Ray Carmichael, BOTCC
National Futures Association and Board of Trade Clearing Corporation announce memorandum of understanding to offer programs and services to electronic marketplaces
October 1, Chicago - The National Futures Association (NFA) and the Board of Trade Clearing Corporation (the Clearing Corporation) today announced a memorandum of understanding to refer each other's respective service offerings to electronic marketplaces. NFA and the Clearing Corporation are two of the leading providers of programs and services to the financial services industry. The memorandum of understanding is a non-exclusive agreement between the two organizations.
"The capabilities of NFA and the Clearing Corporation provide a valuable solution to businesses that are in the process of developing electronic marketplaces," says Dan Roth, NFA Chief Operations Officer.
NFA, a congressionally authorized self-regulatory organization for the U.S. futures industry, offers a variety of services to electronic markets-services that sustain market integrity, increase user confidence and add to the value of the market itself. NFA is known internationally for its quality, independence and extensive experience in providing cost effective yet business oriented regulatory services. These services include:
- Background/Credit Checks;
- Trade Practice and Market Surveillance;
- Financial Analysis and On-Site Review;
- Risk Management; and
- Dispute Resolution
Founded in 1925, the Clearing Corporation is the oldest and largest independent clearinghouse in the world and remains dedicated to serving its members and the financial marketplace with integrity in an innovative fashion. The Clearing Corporation is the only clearinghouse with both a AAA Rating from S&P and a $100 million default insurance policy. Combine those assets with $200 million in committed standby credit and $170 million in highly liquid capital, and the Clearing Corporation is the only clearinghouse to hold such an outstanding rating, credit commitment and insurance policy. Through its clearing process, the Clearing Corporation provides a secure financial environment and provides the broadest services available, including:
- Central counterparty guarantee;
- Trade management;
- Margin processing;
- Collateral management;
- Risk management; and
- Financial surveillance
"With the proliferation of new markets around the world, these types of arrangements make good business sense for all parties involved," says Dennis Dutterer, Board of Trade Clearing Corporation President and CEO. "Our relationship with NFA will result in a strong package of programs and services that will provide emerging marketplaces a higher level of market integrity."