Question: What is the difference between bilateral and central clearing for OTC derivatives O Bilateral clearing involves a private contract between two individuals or institutions. It

What is the difference between bilateral and central clearing for OTC derivatives O Bilateral clearing involves a private contract between two individuals or institutions. It is usually covered by an ISDA Master Agreement Central Clearing are forwards settled in a central physical location where the contract was initiated, Othere is no difference, it is simply a European vs US term O Bilateral clearing is the process after forwards are centrally cleared

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