The product no-one wants to sell: portability held up by lack of rules

Under-the-counter derivatives

It's the product every client wants to buy and no dealer wants to offer: a guarantee to accept a cleared portfolio in the event of another clearing provider collapsing. Without this portability guarantee, derivatives users that access a central counterparty (CCP) indirectly, through its inner circle of clearing members, could have their positions liquidated if one of the member firms implodes – and smaller banks that use indirect clearing won’t be able to apply the rock-bottom 2% risk-weight to