Rise in CCPs may spur collateral fragmentation

Currency controls

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While the perils of a single currency have been crystal clear since the start of the European sovereign crisis, the advantages of a single pool of collateral to draw upon has been brought into focus with the move to centrally clear over-the-counter derivatives.

Asia’s numerous currencies and multiple jurisdictions looking to operate a clearing house could mean a fragmentation of collateral and greater costs for participants looking to clear in different places across the region with central coun

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