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FICC Proposes Enhanced Risk Management With Launch of NYPC

Murray Pozmanter, DTCC managing director, Fixed Income Clearance and Settlement, ranked among Institutional Investor magazine’s 2010 Technology 40. Pozmanter was cited for his leadership role and innovative thinking at DTCC’s Fixed Income Clearing Corporation (FICC).

Murray Pozmanter, DTCC managing director, Fixed Income Clearing and Settlement

“The 2008 demise of Lehman Brothers Holdings caused confusion and uncertainty, but also some constructive brainstorming,” wrote Institutional Investor. At FICC, the brainstorming resulted in the swift and seamless liquidation of Lehman’s $500 billion in mortgage-backed and government securities.

Those events also “sparked the idea of a ‘single pot’ for cash positions and natural derivatives hedges that would take the place of existing cross-margining agreements,” leading to the creation of New York Portfolio Clearing, a joint venture between FICC and NYSE Euronext. This groundbreaking venture, described by Institutional Investor as “a first-of-its-kind cash and derivatives clearing concept,” will enable firms to cross-margin their cash positions with derivatives trades.

Pozmanter is credited for “spearheading development of a mortgage-backed-securities central counterparty that, using netting techniques, would reduce settlement risk in trading mortgage pools,” as well.

The ranking, compiled by the editors and staff of Institutional Investor, includes top executives and innovators in financial technology. The results appear in the July/August issue of the magazine. The list of 40 includes some of the industry’s largest institutions and “companies that began as dot-com-era upstarts and, in their respective niches, are now anything but.” @