US counterparty limits threaten OTC clearing push

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Businessman with a ball and chain

When being pursued by a cat, coyote or other foe, cartoon characters often resort to a tried-and-tested defence: turning a road sign round so it points in the opposite direction. Viewers know what’s in store – the pursuer runs full-tilt into a brick wall, or off the edge of a cliff.

The US Federal Reserve Board seems to have adopted the tactic for one of its Dodd-Frank Act rules. The road sign is the Group of 20 nations policy requiring all standardised over-the-counter derivatives to be

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