Dealing with CCP proliferation

A variety of clearing houses are emerging in Asia – in some cases, backed by domestic clearing requirements for local currency derivatives. That poses some difficult questions for participants active across the region. Should they sign up to all of them or focus their operations on key Asian markets? Aaron Woolner reports

Global dealers have some tough choices to make. As mandatory clearing requirements start to be rolled out, derivatives users will need to decide where they want to clear. For would-be clearing members, it boils down to what looks like a simple choice: accept every request to clear, at every venue – an operationally intensive and expensive option – or focus on a select band of clearers that cover multiple currencies, maximising the potential for offsets and reducing costs. The reality is that