Suzanne Sprague talks at FIA Expo '23 about changes & challenges for clearing & post-trade services
At FIA Expo 2023, JLN's Sarah Rudolph sat down with Suzanne Sprague, senior managing director, global head of clearingΒ ...
Senior MD, Group Chief Operating Officer & Global Head of Clearing, Cme
Search every verified Suzanne Sprague interview, podcast appearance, and on-the-record quote β each transcript cross-checked by AI and human review to confirm speaker identity. At the FIA Expo 2023, Suzanne Sprague discussed several industry developments and projects at CME. She noted that the exchange is paying close attention to the Basel proposal and its potential impact on clearing members' ability to provide central clearing, describing the G20 commitment to central clearing as a core tenet from the financial crisis. Sprague emphasized the importance of ensuring clients can access markets through clearing members, even for products not subject to a clearing mandate. She also commented on the role of regulation in market safety and the need to understand how proposed rules can affect different market participants. Sprague highlighted several ongoing CME projects, including the move to cloud-based clearing services, the migration to the SPAN 2 margin model, and enhancements to the cross-margin program with the Fixed Income Clearing Corporation. She described these initiatives as aimed at increasing scalability, capital efficiencies, and portfolio margining across asset classes such as futures and swaps. Sprague stated that technology has played a significant role in innovation and transformation in clearing over the past five to ten years and that she expects this trend to continue.
“The G20 commitment to Central clearing was a core tenant coming out of the financial crisis. We are paying close attention to the Basel proposal and the potential impact that could have on clearing members' ability to continue providing Central clearing.”
“It's critical that clients are able to have clearing members serve as their intermediary to be able to access markets to hedge and manage the risk every day, even for products that aren't subject to a clearing mandate.”
“Technology has played a big role in innovation and transformation in clearing over the past 5 to 10 years, and I would anticipate it will continue to do so, especially with different Clearing Houses starting to move to the cloud for offering clearing services.”
“We've done a lot of work to increase the capital efficiencies that we provide for market participants, focusing on portfolio margining across asset classes between futures and swaps, and enhancing our cross margin program with the Fixed Income Clearing Corporation.”
“Regulation plays a very critical role in the safety and soundness of our markets. We ensure that as an industry we offer best practices and that the risk management model continues to evolve as needed to support market safety.”
“It's critical to understand how proposed regulation can impact different players in the marketplaceβnot only ourselves but clearing members as intermediaries and clients in being able to access those markets.”
“We are very excited about the move to cloud for clearing services, continuing work this year and next to roll out clearing in the cloud and think about the innovation that can come as a result.”
“Migrating from our current margin model SPAN to the SPAN 2 model will bring capital efficiencies to market participants as a result of the portfolio effects of a more automated model like SPAN 2.”
“FITC cross margining is another example of something we're very excited to bring to market, recognizing offsets between highly correlated markets such as interest rate markets cleared by CME and those offered by the Fixed Income Clearing Corporation.”
At FIA Expo 2023, JLN's Sarah Rudolph sat down with Suzanne Sprague, senior managing director, global head of clearingΒ ...
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