Senator Gregg is standing up for Wall Street – a little shocking. He is a Republican and they tend to be pro-bank, but politics have kept most in DC from saying anything nice about financial services firms. My comments here focus on the linkage (or lack thereof) between execution and clearing and how most can’t see past the CME model:
“You certainly don’t need to trade on an exchange to clear,” Kevin McPartland, an analyst at the Tabb Group, a financial consulting firm, told DealBook. “The two things remain tied in people’s minds because of the C.M.E. model — owning both the execution and clearing portions of every trade,” he said, referring to how the Chicago Mercantile Exchange operates.