This is the second in a series of four articles examining the future of the non-cleared swaps market. The first article is available here, the third is here, and the fourth is here.
A client was recently engaged in talks to cancel two offsetting trades with different dealers – a standard operation for an asset manager looking to clean up its books. But seemingly out of nowhere, one of the banks hit them with a surprise unwind bill for millions of euros.
The two trades had perfectly matching