Hubs will not fix clearing certainty issue, critics claim

Rival services from Markit and Traiana are gaining support, but detractors claim the hubs could be made redundant by CCP credit checks

Despite the launch of two new credit-checking services, critics claim the over-the-counter derivatives industry has still not found a way of providing certainty at the time a swap is executed that it will be accepted for clearing. Banks and trading platforms are already signing up to use the services, but some have misgivings about whether these so-called hubs, run by Markit and Traiana, will work as planned.

When the first swap execution facilities (Sefs) open for business in the US – which