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The article discusses the electronic payment processing industry in China, focusing on a statement by the Chinese State Council that foreign firms will be able to apply to set up bank-card clearing operations in China. Topics include the types of transactions foreign companies such as Visa Inc., MasterCard Inc., and American Express Co. can conduct in China, the China UnionPay Co. monopoly on Chinese payments; and a discussion of how far China may open its market.

The article discusses a dispute between U.S. and European regulators over regulations concerning clearinghouses such as CME Group Inc. and IntercontinentalExchange Inc. The European Union (EU) refuses to acknowledge an equivalence between European and U.S. regulations, thus endangering the clearinghouses' cross-border businesses. Some regard the EU's stance as retaliation for the U.S Commodity Futures Trading Commission's similar stance taken with respect to EU trading platforms for swaps.

The article discusses Luxembourg's ambition to become a major center for trading in the Chinese yuan. During a trade mission to China in July, 2014, Chinese officials signed agreements expected to lead to the creation of bank for clearing yuan in Luxembourg. China Construction Bank Corp. is among Chinese banks that have obtained Luxembourg banking licenses and established their European headquarters there.

The article discusses penalties assessed banking company BNP Paribas for having circumvented U.S. sanctions against Sudan and Iran. Paribas will pay a fine of close to $9 billion, and will also have its ability to clear U.S. dollar transactions temporarily curtailed. The author notes that while the U.S. government tailored its penalties to ensure no disruptions to the financial system, its lenience could enable future excessive risk-taking by banks.

The article, citing anonymous sources, reports that the London Stock Exchange Group PLC is close to acquiring the clearinghouse LCH.Clearnet Group Ltd. The acquisition would allow the stock exchange operator to have a larger market share of derivative securities trading. The value of LCH.Clearnet is estimated at $1.31 billion.

The article reports that India has acted to reduce trade with Iran by ordering its banks to no longer process current-account transactions through the trade-finance clearinghouse Asian Clearing Union. The U.S. has been prodding India to take such action in an ongoing effort to sanction Iran for its nuclear program.

The article examines the Global Transactions Services (GTS) division of the bank Citigroup Inc. The unit processes international financial transactions for international business enterprises, banks, and governments, including many elements of the U.S. government. It has emerged as one of the troubled banks major profit sources, an anomaly considering the U.S. bailout of the bank.

The article reports that major financial services companies are negotiating to create a clearinghouse for credit-default swaps. The amount of these credit derivatives, which are a form of insurance against bond and loan defaults, is measured in the many trillions of dollars. The clearinghouse would guarantee payment on contracts it handles, lessening the risk of catastrophic market failure should a firm be unable to make good on a trade.

This article presents information about the efforts of some banks to woo legal and illegal immigrants as customers. Migrant workers from Mexico are being lured into making money transfers through U.S. commercial banks through remittance programs that enable the banks to make money transfers through the Federal Reserve's automated clearinghouse which is linked to the Banco de Mexico. The purpose is to make it cheaper and safer for the Mexicans to send money to relatives.

Reports that the German-Swiss futures exchange Eurex sued the Chicago Mercantile Exchange and the Chicago Board of Trade, alleging they violated antitrust laws in trying to undermine Eurex's Feb. 1, 2004, launch in the U.S. Amount of money the Chicago exchanges allegedly offered to shareholders of the clearinghouse that Eurex had chosen to process its trades to vote against a restructuring plan necessary for Eurex to close the deal; Reaction of the Commodity Futures Trading Commission with respect to Eurex's approval process, suggesting a heavy lobbying effort by the Chicago exchanges.

The article offers financial industry-related news briefs as of November 26, 2014, including the credit card company Discover's filing of a lawsuit against rival Visa Inc. for anticompetitive practices, calls for stricter regulation of clearinghouses, and the U.S. Federal Reserve's proposed rules for the conglomerate company General Electric.

The article discusses the backing of short-term lending market safeguards by banks including Goldman Sachs, J.P. Morgan Chase, and Morgan Stanley, focusing on the work of repurchase agreement clearinghouses .

The article discusses how financial regulators' attempts to reduce systemic risk and increase transparency could benefit derivatives clearinghouse CME Group Inc., which raised its credit line and has taken measures to protect itself against any clients' financial collapses.

The article argues that incumbent U.S. president Barack Obama began implementing a policy whereby U.S. taxpayers would back U.S. derivatives clearinghouses as of May 23, 2012, and that the policy would present major problems for Obama's successor.

The article reports that U.S. financial regulators have identified some payment and clearing firms as possible risks to the national economy in the event of their failure, and provides details on the process of investigating these firms under the Dodd-Frank financial overhaul law.

The article reports on the approval of the transfer of some customer accounts of MF Global Holdings Ltd. to other clearing firms by a U.S. bankruptcy judge in November 2011.

The author comments on the statement of U.S. Federal Reserve Board Chairman Ben Bernanke about the consequences of forcing derivatives market into central clearinghouses.

The article reports on governance rules for derivatives clearinghouses and trading platforms proposed by the U.S. Commodity Futures Trading Commission (CFTC) which it disclosed on October 1, 2010.

The article reports that the U.S. Commodity Futures Trading Commission (CFTC) will vote on proposed rules for derivatives clearinghouses on October 1, 2010.

This section offers news briefs on the securities industry as of September 18, 2010, including the negotiations between hedge-fund manager Citadel and some investors over reducing management fees and terms of redemption for Citadel's two flagship funds, the plan by London Stock Exchange Group PLC (LSE) to establish a new clearinghouse in London, England and the increase in stock price of Chinese real-estate website SouFun Holdings Ltd. on its first day of trading at the New York Stock Exchange (NYSE).

The article reports on the decision of the European Commission to cancel its plan to require providing trading clearinghouses with access to central-bank credit lines due to concerns that this would affect the status of London, England as a financial center.

The author reflects on the entry of clearinghouses in the derivative securities sector in the U.S.

The author claims that trading securities at clearinghouses will not prevent a financial crisis because clearinghouses only provide efficiencies in transparency and trading.

The article offers views on how derivative securities should be treated in the financial-regulation reform bill of U.S. Senator Chris Dodd. Professors Thomas Jackson and David Skeel suggest trading of derivatives on public exchanges, creating a clearinghouse to assess credit-worthiness of both parties and removing special treatment during bankruptcy that led to bailouts. Commodity Futures Trading Commission chairman Gary Gensler adds that it should address the interconnection between financial institutions and regulate derivatives as commodity futures.

The article reports on the recovery of the U.S. economy as threats to the banking system remain as of December 2009. It proposes changing the rules that could break the vicious cycles of bigger banks and bigger bailouts. The majority of economists and the administration of President Barack Obama favor pushing those involved in the market for credit derivates to do business through a central clearinghouse that would stand between the parties in trades and guarantee obligations. It also cites an issue that arises as the country recovers from the recession.

The article reports on the move by China to establish a new central clearinghouse. It notes that the new body is tasked with centralizing settlement and clearing of financial products that are traded among banks in the country. It adds that the creation of the new clearinghouse can increase confidence in the derivatives markets and allow the approval of new products by regulators. The new body works by assuming the risk that counterparties might default and taking insurance against the happening through the collection of collateral from each party.

The article reports on the intention of the U.S. Commodity Futures Trading Commission (CFTC) Chairman Gary Gensler to support giving federal regulators the power to decide on clearing swaps, according to Barney Frank, chairman of the House Financial Services Committee. The initial advice of Gensler, which calls for clearinghouses to decide on swaps, was included in two over-the-counter derivatives bills approved in October 2009. But Frank believes that such power would create conflict of interest.

The article reports on the decision of the Anglo-French clearinghouse LCH.Clearnet to launch a stock-redemption initiative in order to offer lower fees in the competitive market. The clearinghouse stated that a total of 444 million euros will be returned to shareholders. European settlement depository Euroclear plans to sell back its 15.8% stake at LCH. Clearnet. The stock-redemption initiative was welcomed by LCH.Clearnet chairman Chris Tupker.

The article reports on the plan among U.S. securities banks to route nearly all swap transactions through clearinghouses at the end of 2009. It notes that such plan is part of a bid to lessen the risks in over-the-counter markets. It adds that 15 dealer banks have expressed to the Federal Reserve Bank of New York their intention to clear over 90% of interest-rate and credit-derivatives trades by year end. The banks include Goldman Sachs Group Inc. and J.P. Morgan Chase & Co.

The article reports that two derivative exchanges, one being ICE Clear Europe, have started to clear European credit default swaps (CDS) in 2009. The European Commission expects that clearinghouses will be utilized by banks to clear CDS. A clearing service in Paris, France is being planned by European clearing company LCH.Clearnet Group Ltd.

The article reports on the net loss of 182 million dollars posted by securities exchange operator NYSE Euronext for the second quarter of fiscal 2009. Costs incurred from a new clearinghouse in London, England and from staff cutbacks are cited as factors behind such net loss. According to the company, its earnings have dropped to 132 million dollars from the 199 million dollars recorded in the previous year. Analyst Rikin Pandya believes that the margins of the company will continue to experience pressure from pricing competition in cash stock markets.

The article reports on the distribution of the nearly $54 million remaining in Reserve Management Company's U.S. Treasury Fund. The money has been wired to the money-market fund's institutional investors and checks were mailed to its direct retail investors. Redemptions were suspended by the Reserve U.S. Treasury Fund, which included checking and automated clearinghouse transactions.

This article explains that a takeover bid received by the LCH. Clearnet Group Ltd. from a consortium composed by Deutsche Bank AG, J.P. Morgan Chase & Co. and ICAP PLC has forced it to make a tough decision. LCH. Clearnet is a major European trading clearinghouse and its options are limited to a buyout or go it alone as a nonprofit utility.

The article reports on the cancellation by Depository Trust and Clearing Co. (DTCC) of a merger with LCH.Clearnet. It notes that the proposed merger could form the world's largest clearinghouse for financial products. The cancellation comes amid an increasing focus by banks and exchanges on clearing over-the-counter products, which was partly influenced by regulatory concerns about the risk caused by bilateral trading.

The author reflects on the significant U.S. policy issues raised by a statement issued by Goldman Sachs that its exposure to AIG was not material. He explains the notion of the empty creditor phenomenon, which helps clarify creditor behavior toward troubled debtors. The author also discusses the importance of a clearinghouse in helping financial institutions to avoid misunderstanding their own products.

The article focuses on a working group discussion on the future of risk in the U.S. held in March 2009. Group co-chairman Robert Greifeld, chief executive officer (CEO) of Nasdaq OMX Group Inc., says they tackled the need to enhance collateral in the credit-default swap (CDS) market. Co-chairman Eraj Shirvani comments on a suggestion for creating new clearinghouses. Soros Fund Management LLC chairman George Soros states that the financial crisis as of March 2009 is attributable to the failure of people to realize that there are systemic risks.

The article reports that Nasdaq OMX Inc. is pushing ahead with plans for the International Exchange Saint Petersburg (ISXP), an exchange project in Russia that had been delayed over discussions with partners over how to clear the shares. It notes that the firm expects the exchange to start before the end of 2009, making it the first Western operator of an exchange in the nation. According to the firm's web site, IXSP has held talks with LCH.Clearnet and Citigroup Inc. to act as their clearinghouse.

The article reports on the approval of an application by IntercontinentalExchange Inc. to clear credit-default swaps through a new clearinghouse by the U.S. Federal Reserve in 2009. It notes that the plan would advance the goal of the government to reduce risk in the financial markets. ICE US Trust LLC will become a member of the Federal Reserve System. The Securities and Exchange Commission (SEC) will issue the final decision on such a proposal.

The article reports on the slow progress in solving the problem of counterparty risk in the credit derivatives market. It notes that the index that measures counterparty risk of global financial institutions rose to its highest level since October 10, 2008. The planned swap-clearinghouses to reduce counterparty risk have not opened for business as regulators have differing views on how to regulate the market. The problem in investor confidence is said to be limiting swap trades in broader market.

The article reports on the criticism by NYSE Euronext Inc. and Eurex on a draft bill to expand derivatives regulation in the U.S. The companies fear that the bill will impede foreign firms from offering clearing for U.S. products. NYSE Liffe chief regulatory officer Karl D. Cooper and Eurex board member Thomas Book said at a hearing that they are concerned the bill may have unintended consequences.

This section offers news briefs on finance from around the world. The European parliament was asked to support legislation forcing banks to use a clearinghouse to clear credit default swaps. Tom McKillop stepped down as chairman of the Royal Bank of Scotland Group PLC. Shinsei Bank posted a loss of 12.8 billion yen for the fiscal third quarter.

The article reports that the European Commission is weighing the next step to take after it failed to get a commitment from the $58 trillion credit-derivatives industry. It mentions that the Commission is likely to introduce new rules forcing banks and other users of the credit derivatives (CD) markets to use a central clearing house as a way to reduce risk. Accordingly, the collapse of Lehman Brothers Holdings Inc. in September 2008 has accelerated efforts to develop CD clearing that would guarantee trades done between different companies.

This article reports on a statement issued by European Central Bank Vice President Lucas Papademos regarding the risks facing the euro-zone economy. According to Papademos, the risks the euro-zone economy would suffer from the fallout of global-financial turmoil had risen. He touted the formation of a clearinghouse that would guarantee the loans banks make to one another as an option to help in the recovery of money markets.

The article reports on the support of ICAP PLC to the creation of a central clearing house to reduce risk in the over-the-counter markets in which it acts as intermediary. According to ICAP, the clearing house must be open to business from a range of trading venues rather than being tied to one exchange that owns it. Regulators have been calling for a clearing house to avoid future financial crises.

The article reports that derivatives-exchange-operator IntercontinentalExchange Inc. (ICE) will be acquiring Clearing Corp. as big credit-default-swap dealers support the former's plan to develop a clearinghouse. Among these dealers include Deutsche Bank AG and Credit Suisse Group. According to the article, clearing swap trades made in a single clearinghouse could help reduce the amount of margin that firms post to support their trades.

The article reports on the plan of Depository Trust & Clearing Corp. (DTCC) to acquire British firm LCH.Clearnet Group Ltd. in a €739 million deal that is believed to create a large trans-Atlantic clearinghouse for stocks, bonds and derivatives. It states that the lowering of trade-processing costs for large banks and dealers who are DTCC shareholders is anticipated from this merger.

The author points out that a centralized clearinghouse is one way of solving the problem concerning over-the-counter (OTC) derivatives. According to the author, centralized clearing ensure a guaranteed seller in every buyer and a guaranteed buyer in every seller. The author also says that centralized clearing is one step that can reduce market risks and benefit the U.S. economy.

The article reports that the Federal Reserve Bank of New York has called for a meeting among participants in the U.S. credit-default swap (CDS) market on October 10, 2008. The purpose of the meeting is to discuss solutions to streamline and reduce counterparty risk in the market through the creation of one or more central clearinghouses. CME Group Inc. and Citadel Investment Group revealed plans for a CDS trading platform tied to a clearinghouse.

The article deals with the plan of stock-lending services provider Quadriserv Inc. to launch an exchange-like system that will bring together stock lenders and borrowers. The company is collaborating with Options Clearing Corp, which will provide a central clearinghouse for stock lending trades that take place on the platform and ensure that parties comply with their lending agreements. The author notes that Quadriserv's platform could increase price transparency in stock lending and help investors borrow securities more easily and inexpensively.

The author reflects on the financial crisis in the U.S. He says that the administration of U.S. President George W. Bush may decide to do something drastic in its final days if the mass selling continues. He states that the U.S. Federal Reserve and other central banks could serve as a clearinghouse for unsecured bank-to-bank loans in order to revive interbank lending.