Buy side pushes back on Aussie dollar swap clearing

Small firms reluctant to clear due to margin costs

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Buy-side market participants have welcomed the decision by Australian regulators not to impose a broad clearing requirement for Australian dollar interest rate swaps, but some fear the lower cost of cleared swaps will have the same effect. On April 4, the Council of Financial Regulators (CFR) – comprising the Reserve Bank of Australia, Australian Prudential Regulation Authority, and Australian Securities and Investments Commission – released a report recommending internationally a