'Don't make us clear inflation swaps,' dealers plead

walkplank

Inflation swap clearing should not be compulsory when it launches next year, some dealers are warning. The collapse of one of the big banks that dominate the market would overwhelm a central counterparty's (CCP) ability to cope, they fear – and even LCH.Clearnet, which had been hoping to start offering the service during 2013, suggests a bedding-in period might be needed before regulators step in.

"The UK inflation swap market is hugely concentrated. It is dominated by five or six dealers. If

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

New investor solutions for inflationary markets

Geopolitical risks, price volatility, clashing cycles, higher interest rates – these are tough times for economies and investors. Ahead of the 2022 Societe Generale/Risk.net Derivatives and Quant Conference, Risk.net spoke to the bank’s team about some…

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here