U.S., Canadian Multilateral Netting Banks Set To Form Joint Clearing House; Hurdles Cleared

The U.S. and Canadian banks who have been working to set up separate multilateral netting projects have tentatively agreed to join forces and review the feasibility of establishing one clearing house that would serve all of North America. While the final decision will depend upon approval being received from the regulators of both countries, the merger would greatly strengthen the project.

Garrett Glass, vice president, credit policy at First Chicago, one of the member banks, says that the merger