
Swaption compensation consensus proves elusive
ECB-sponsored recommendations fail to rally market behind compensation exchange solution

The euro swaptions market hit a milestone in late July when long-planned changes to the discount rate at clearing houses led to knock-on adjustments in the valuations of related derivatives.
But despite regulator-backed recommendations that any losses should be compensated on a voluntary basis, many users are unwilling to participate in a potential voluntary compensation exchange.
In its recommendations for the discounting switch, the European Central Bank-led euro risk-free rates working
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