Exchanges and clearing

Special report

Central clearing may be the showpiece of new legislation to regulate the over-the-counter derivatives market, but one of the major battles of the post-Dodd-Frank world will be fought over pre-clearing territory – the execution of swap contracts.

The Dodd-Frank Wall Street Reform and Consumer Protection Act, signed into law in the US on July 21, requires any swap subject to the clearing requirement to be executed on a board of trade designated as a contract market or a swap execution facility (SE