Clearing single-name CDS 'uneconomical'

High margin requirements may make central clearing of single-name CDS impossibly expensive, according to one clearing specialist. Four exchanges - CME, ICE, Liffe and Eurex - say they intend to clear single-name contracts this year. Yet senior figures involved in the process suggest the high margin payments and the size of the default funds required to protect against losses on single-name CDS could make it uneconomical. Uwe Schweickert, senior vice-president at Frankfurt-based Eurex, says that

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