Clearing Corp says it is seeking New York banking licence

Chicago-based clearing house The Clearing Corporation said yesterday that it is working to get a New York banking licence for its credit derivative clearing venture. It said it is working “aggressively” to launch the CDS clearing platform by the end of the year in the light of recent events in the credit derivatives market. The clearing entity will be a trust bank which will be regulated by the Federal Reserve Bank of New York and the New York State Banking Department. The clearing house aims to clear US and European single name, indices and tranche credit derivatives.