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BofA Merrill Launches Global Futures and Derivatives Clearing Services

Bank of America Merrill Lynch has formed the Global Futures and Derivatives Clearing Services (GFDCS) Group, the firm announced last week. The brokerage firm said it formed the global initiative in anticipation of the substantial growth in OTC derivatives clearing and the tremendous demand for education and related services from the company’s institutional investor and corporate clients.

GFDCS builds off the company’s futures business to provide agent-clearing services for rates, currencies, credit, equities and commodities derivatives. The GFDCS group will operate as part of BofA Merrill’s Global Markets Financing and Futures platform (GMF&F), which includes prime brokerage and services.

Bob Burke and Gonzalo Chocano have been named co-heads of the GFDCS group, reporting to Denis Manelski and Syl Chackman, co-heads of GMF&F.

"Establishing an industry-leading derivatives clearing service is a top priority for our Global Markets business. Every client we serve will be impacted by the financial reforms transforming the OTC derivatives market," commented Tom Montag, president of Global Banking and Markets, in the release. "We are committing considerable resources to all areas of the business to ensure our client clearing services are best-in-class," further stated Montag.

The launch of BofA Merrill's GFDCS platform follows a yearlong planning effort, including feedback from more than 3,000 clients who have attended educational seminars and one-on-one briefings. "Bank of America Merrill Lynch is taking an important leadership role in educating the industry and dealing with issues surrounding OTC derivatives clearing," said Mike Roberge, president of Mass Financial, in the release.

"Bank of America Merrill Lynch was one of the first dealers to recognize and prepare for the transformation of the derivatives clearing market. We are grateful that they stepped up to the plate as testing agent on behalf of many market participants," stated Martha Tirinnanzi, chairperson of the clearinghouse working group of the Federal Housing Finance Agency, at an industry conference held earlier in the year, according to the release.

Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio

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