Clearing houses are experiencing record activity as banks and investors comply with new derivative rules and push
Question:
Clearing houses are experiencing record activity as banks and investors comply with new derivative rules and push their over-the-counter fixed income and foreign exchange swaps towards centralized venues that bolster risk management for the industry.
1. Why is there regulatory pressure for swap market trades to be centrally cleared?
2. What are the advantages and disadvantages to counterparties if swap transactions are centrally cleared?
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Regulatory Pressure for Central Clearing of Swap Market Trades The regulatory pressure for swap market trades to be centrally cleared primarily stems from the 2008 global financial crisis and the subs...View the full answer
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Related Book For
Corporate Finance Principles And Practice
ISBN: 9781292450940
9th Edition
Authors: Denzil Watson, Antony Head
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