To clear or not to clear? Corporates urged to weigh options
Despite hard-won exemptions, corporates should consider the pros and cons of clearing, according to panellists at an ACT event - but treasurers remain unconvinced
Corporates should carry out a cost-benefit analysis to decide whether or not to centrally clear their over-the-counter derivatives trades, according to panellists at the annual conference of the Association of Corporate Treasurers (ACT) on April 18.
Sustained lobbying won corporate hedgers an exemption from mandatory central clearing under the US Dodd-Frank Act and the European Market Infrastructure Regulation (Emir), but panellists said some companies might find they are better off choosing to
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