CPSS-Iosco lifts cloud on forex options clearing
CCPs do not have to guarantee settlement, CPSS-Iosco rules - but issue could still have some way to run
One obstacle to the clearing of foreign exchange options has been lifted via a clarification provided by global regulators in their revised principles for financial market infrastructures (FMIs). The original document appeared to require them to guarantee settlement, an obligation that could have exposed clearers to large liquidity risks. But while the revised principles lift that requirement, it may not be a total reprieve for prospective foreign exchange options clearers, with some regulators
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