OTC market faces up to CCP-dependent pricing

Spot the differentials

Scales with fruit

Early adopters of central clearing are encountering a problem they hoped had been left behind – when asking dealers to quote a price for the same product, they are getting different answers, or finding some are unwilling to trade at all. In the bilateral world, these differences in price and liquidity are largely driven by counterparty credit quality and the details of each client’s collateral agreement – but where dealers are facing a central counterparty (CCP) on each trade, it should remove b

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