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Financial policymakers globally are seeking to corral risks associated with over-the-counter (OTC) derivatives. They hope increased centralisation via clearing houses will generate greater transparency and eliminate many financial system risks.
If it didn't break, why fix it?
That is the question being asked byforeign exchange bankers after Barney Frank, chairman of the House FinancialServices committee, announced currency derivatives would not, after all, get anexemption from proposed...
Foreign exchange bankers reacted with alarm on Wednesday to proposals from Barney Frank, the powerful chairman of the House financial services committee, that would require trades in currency derivatives to be processed through a centralised clearing...
For anyone toiling in the arcane world of clearing, figures out this week showing that the over-the-counter derivative markets were showing signs of life must have sounded like good news.
The Options Clearing Corporation, the world's biggest equity derivatives clearing organisation, plans to offer the first central clearing facility in the US for the $6,500bn over-the-counter equity derivative market by next year.
The market for over-the-counter (OTC) derivatives contracts has rebounded, led by increasing volumes of interest rate and foreign exchange derivatives, in a sign of more investors positioning themselves in an increasingly uncertain outlook for global economies.
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