Australia dealers face Sef time zone issues

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Australian dealers are facing operational risk due to the potential for trades on swap execution facilities (Sefs) to be voided due to insufficient margin, failures which they will then not be notified of because of the time zone difference between Sydney and London where virtually all trades are currently cleared. Australian banks currently make up five of the ten Asia based swap dealers registered with the Commodity Futures Trading Commission (CFTC) which therefore exposes them to Sef rules

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