Swaptions compensation method divides market
US and European firms back redress payments, but disagree over how they would work
Swaptions users are struggling to agree a method for compensating investors that lose out from the upcoming change in swap discount rate at clearing houses.
Market participants in the US and Europe broadly agree that a compensation mechanism is needed, but divisions still remain within each jurisdiction over how it would work in practice.
With any method of redress likely to be voluntary, there
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