OTC Derivatives Clearing Summit: Clearing incentives "are not there" - Goldman's Frankel
Regulators want capital and margin rules to encourage central clearing, but analysis suggests costs may currently be higher in the cleared world
Existing capital and margin rules may not encourage market participants to centrally clear their over-the-counter derivatives trades, according to Oliver Frankel, global head of over-the-counter derivatives clearing at Goldman Sachs, who was speaking yesterday at Risk's OTC Derivatives Clearing Summit in New York.
The capital regime for both cleared and uncleared trades is still unsettled, as is the margin regime for transactions that remain bilateral, but regulators are keen to ensure the
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