CME-LCH basis affecting choice of venue, say buy-siders
Price difference is now "material", warns Pimco's De Leon
Buy-side firms say a two-week jump in the cost of trading swaps that are cleared at CME Group rather than rival LCH.Clearnet is big enough to drive them away from the Chicago-based venue – and some worry the basis could threaten the existence of CME's clearing service.
A small difference between the two central counterparties (CCPs) has always been recorded in the market for so-called switch trades, or basis swaps, in which equal and offsetting trades are simultaneously executed and cleared at
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