CCPs mull equity swaps clearing solutions

Central counterparties have begun working on solutions to clear a broader range of index-based over-the-counter equity derivatives, with many focusing on total returns swaps. But progress has been slow, due to a lack of market standardisation and fears of triggering a regulatory mandate

Equity swaps clearing remains a challenge

Clearing houses in the US and Europe are exploring the possibility of clearing a broader range of equity swaps products, Risk.net has learned, amid moves by dealers in the over-the-counter equity derivatives market to reduce the balance sheet impact of capital-intensive trades.

"We're being asked to participate in a lot of brainstorming sessions that look at introducing clearing to different securities financing plays – with total return swaps (TRSs) being one of those – so that these new