US funds fear inability to clear amortising swaps
A prohibition on taking cross-border risk could force some category two participants to stop trading amortising swaps from June 10
An inability to take cross-border risk could mean some US funds are forced to stop trading certain interest rate derivatives once the second over-the-counter clearing mandate comes into force from June 10.
The problem arises because some products subject to the clearing requirement – specifically, amortising swaps – are currently cleared by London-based SwapClear only. While the firm is registered with the Commodity Futures Trading Commission as a derivatives clearing organisation, and launched
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