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 on
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