OTC Derivatives Clearing Summit: Capital burdens could weigh on swap futures

carrying-1

The margin advantage enjoyed by swap futures contracts will be short lived, panellists predicted at Risk's OTC Derivatives Clearing Summit yesterday - either being reined in by risk and capital considerations, or as a result of the product's own success.

The instruments are controversial because they promise to replicate the economics of an over-the-counter interest rate swap, but the versions offered by CME Group and Eris Exchange are margined on the assumption it will take no more than two day

To continue reading...

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 indvidual account here: