Article: Nasdaq Drops Clearing Initiative ...(News Desk)

Byline: Editorial Staff

Nasdaq OMX's plan to launch an equity clearing facility to compete with the Depository Trust Corp.'s National Securities Clearing Corp. has been put on hold.

"The NSCC has come out with a series of pricing reductions, so we're re-evaluating whether it really makes sense to move forward with the initiative," says Brian Hyndman, senior vice president of transaction services at the exchange company.

The prospect of a competitor was especially interesting to self-clearing broker-dealers who, three years ago, were saving money by aggregating hundreds or thousands of orders on each side of a trade, and using a technique called ...

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