Lack of certainty over OTC clearing location a problem for Asia asset managers
Asset managers in Asia are being hindered in preparing for OTC clearing by a lack of clarity over location
Uncertainty on whether to clear over-the-counter derivatives via a local or international clearing house is presenting challenges for Asia buy-side market participants.
In Japan, regulators have mandated that credit default swaps on iTraxx Japan should be cleared through a licensed domestic central counterparty (CCP) and that interest rate swap trades on yen Libor must be cleared through a licensed domestic, foreign or linked CCP.
In contrast, Australian regulators recommended in a paper
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