Contributor: Gavin Lee
The concept of centrally clearing all OTC derivatives - both standardized and complex derivatives - is flawed. The current regulatory expectation for institutional investors is to go through a central clearing party for an expanded range of products. Compounding this requirement is that derivatives will need to be reported through trade repositories. This means that derivative products have to be cleared through a central counterparty, but not every derivative instrument fits this model.... read more
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