Contributor: Robert Freeman

The introduction of legislation to move the settlement of some OTC derivative transactions onto central counterparty clearing mechanisms forms part of the new regulatory reform proposed both in the U.S. and Europe. The aim of this proposal is to increase transparency in an opaque market while reducing operational risk associated with the manual settlement processes that are prevalent with this asset class. The changes will be the responsibility of the operations manager. The question is whether central clearing of OTC derivatives will improve the life of the operations manager.... read more