Asia to follow US on clearing amid fears about hedging costs for exporters

Banks in Asia say there is no easy formula in deciding whether moving over-the-counter foreign exchange instruments onto central counterparty (CCP) clearing would represent a lower-cost solution for their corporate clients, or if they are better off falling back to the traditional practice of using a credit support annex (CSA) under International Swaps and Derivatives Association master agreements.

In Asia, G-20 member countries such as Australia, China and Japan, are expected to largely follow