Clearing Alliance cut Eurex fee's to €0.48c roundtrip

[Parky]

Bundbaby,
It cant be done. What you are talking about is called "designated segregated" and no clearer offers it. It would mean a seperate bank account for each and every trader which is too exepnsive. Even if they did the clearing houses and exchnages pool everything anyway. i.e Eurex and LIFFE so it just isnt offered. The ONLY protection is the balance sheet of the company you are clearing with. By that I mean you have to conract directly not via a third party. Contract with TCA your risk is with TCA, contract directly with a large balance sheet clearer like Fortis and then you have the protection of their balance sheet. May cost a little more per lot but in the end it is always worth it. Like anything else in life you get what you pay for.

 

[bundbaby]

So if i clear TCA , traders clearing alliance, I have less protection than if I clear Fortis direct?

 

[bundbaby]

Thought there was a catch - no wonder clearing is cheap. Reminds me of when BCCI, the London Bank went down and everybory lost their funds. The investors thought they were getting a better deal than everyone else, which is why they put their money there. THERES NO SUCH THING AS A FREE LUNCH

 

[nohare]

Sounds EXTREMELY RISKY - you should demand your funds are safe from another traders losses!!!!!!!!

Thats the problem. To get these low rates you must become a 'member' ! Your money is then tied to the alliance. As you say to keep your money safer you must have your own agreement with Fortis. Presumably the Alliance can also arrange this but the rates would be higher.

 

[sambinho]

Did anyone ever use/still use TCA?

 

[DC STOXX]

Im pretty sure this is the same with any trading arcade though....the important part is the balance sheet of the company.

Correct me if i'm wrong, but at what arcade would your funds be totally safe regardless of "mr mental averager" loosing £xx,xxx,xxx over nfp?

As far as im aware, its the same everywhere at all the the trading shops.

 

[Parky]

Stoxx,
Not if you are self financing and clearing direct with the GCM or the big balance sheet clearer, for example you could sit in an arcade but clear directly with Fortis, Man Financial, etc, you have all the benefits of sitting in a trading arcade but none of the associated risks.
However as stated you have to be totally self financing, many are only partially self financed or need other funds to leverage and so have to clear via the arcade and take the risks a weaker balance sheet entails. The bigger trading arcades tend to cater for this "pick and mix" approach.

 

[DC STOXX]

I assume the margins to trade when you are totally self backed are the same as the exchange margins, or would a clearer such as fortis give you some leverage?