Clearing has traditionally been a low margin business, and brokerdealers have often offered these services to clients in the belief that doing so may lead to more profitable business. In the new environment, broker dealers are reconsidering this model, and may reduce services to smaller clients or move to an agency model with higher fees.
Banks and broker-dealers serve not only as clearing members of CCPs, but also as liquidity providers and as custodians of their cash and securities. CCPs typically have lines of credit  4  See Financial Stability Board (2015), “OTC Derivatives Market Reforms: Ninth Progress Report on Implementation (PDF)“ (Basel, Switzerland: FSB, July). 5  See www.federalreserve.gov/newsevents/press/bcreg/bcreg20151030b1.pdf.