CORRESPONDENT CLEARING RELATIONSHIPS (2) (BUS 507)

Professors Garry Lischin and Peter von Maur

This course will examine the business and regulatory underpinnings of correspondent clearing relationships. In particular, the course will focus on issues surrounding the clearing, settlement, and custody services performed by clearing firms for “introducing firms.” The course will examine in detail the regulatory approval process, contractual issues, the settlement and clearing process, custody, regulatory and litigation matters, and challenges as products, services, and markets become more complex and expand globally. This course will provide important practical perspectives of the clearing business and how the rapidly changing regulatory landscape has affected correspondent clearing relationships. Special topics will include omnibus vs. fully-disclosed clearing arrangements, agency liability, due diligence requirements, AML, government and SROP audits and examinations, global clearing issues, use of collateral, financing arrangements, bankruptcy issues, data protection, and the special clearing differences among equities, stock options, bonds, futures, and OTC products. (Open to LL.M. Students Only)