Profile: CLS Bank's Bozian on regulatory co-ops and CCP settlement risk

Clearly settled

Reform of the over-the-counter derivatives market is still being finalised, but a new world – built around mandatory clearing, electronic execution and reporting – is beginning to take shape. These measures will help limit systemic counterparty risks, regulators hope, either by mitigating it directly or by shining a light into the previously opaque OTC market so exposures are not allowed to reach dangerous concentrations.

But national interests are making the realisation of this vision difficult