Bank of America Merrill Lynch (BAML) is to form a new clearing function, the Global Futures and Derivatives Clearing Services (GFDCS) group, in anticipation of an expected increase in OTC derivatives clearing following proposals in the US and Europe to centrally clear the majority of OTC derivatives trades.
The new group builds off the company's existing futures business, to provide agent-clearing services for rates, currencies, credit, equities and commodities derivatives. The GFDCS group will operate as part of BAML's Global Markets Financing and Futures (GMF&F) platform, 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,” said Tom Montag, president of global banking and markets. “Every client we serve will be impacted by the financial reforms transforming the OTC derivatives market. We are committing considerable resources to all areas of the business to ensure our client clearing services are best in class.”
Fellow broker Goldman Sachs launched a similar service, Goldman Sachs Direct Clearing Services, on 28 July.