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How Have Capital Levels of Futures Commission Merchants Changed Since the Global Financial Crisis?

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Following the Global Financial Crisis of 2007–09 (GFC), regulators across the world enacted regulations to repair and strengthen financial markets. These regulations included a mandate to have more financial market contracts be cleared through central counterparties (CCPs), which are financial institutions that guarantee the performance of contracts.1 As a result, the central clearing of derivatives transactions increased significantly, and so did the allocation of capital to support this activity in line with regulatory requirements. If demand to centrally clear transactions continues to rise, will clearing firms have enough capital capacity to meet this new demand?

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  • Shengwu Du & Ketan B. Patel, 2025. "How Have Capital Levels of Futures Commission Merchants Changed Since the Global Financial Crisis?," Chicago Fed Letter, Federal Reserve Bank of Chicago, vol. 507, pages 1-10, June.
    • Handle: RePEc:fip:fedhle:101375
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