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Article: Spain's Meff to be central counterparty for repo bond trades.
- Article from:
- Financial News
- Article date:
- April 23, 2003
CopyrightCOPYRIGHT 2003 Financial News Publishing Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Vivek Ahuja
Meff, the Spanish futures and options market and clearing house, is setting up a central counterparty clearing house for government bond repos in Spain.Until last year, governing bodies of futures markets were not allowed to act as central counterparties on repo contracts under Spanish law. However, recent changes to the law have paved the way for institutions such as Meff to create central counterparty clearing houses.
A central counterparty assumes the rights and obligations of both parties to a repo contract and therefore acts as a counterparty to each of them. Meff has been involved as a central counterparty for futures and ...