Unclear incentives: do capital and margin rules support CCPs?

Regulators see incentives to use cleared swaps; critics claim analysis is flawed

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All clear? Banks accuse report of significant blind spots

The mandatory clearing of over-the-counter derivatives rests on a promise of economic legitimacy that has been repeated time and again by regulators since leaders of the Group of 20 (G20) nations agreed the policy in 2009. Simply put, it will be cheaper to clear an OTC trade than to execute it bilaterally.

So, is it? In April 2013, regulators set out to test the proposition, convening a group of 22 economists from 13 central banks and regulators – the OTC Derivatives Assessment Team (DAT) –

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