FIA Panel Ponders Why Cleared SWAP Derivatives Are Not More Popular

Cleared SWAPs - Where is product innovation in financial services going to come from? A panel of bank and independent hedge fund and market maker experts agree that cleared derivatives have become a logical path to the future, but the question is: when will it happen? Despite what participants recognized as advantages, there still has yet to be a “liquidity pop” in cleared versus non-cleared SWAP derivatives, JPMorgan’s Nick Rustad noted at the 32nd Annual FIA Futures and Options Expo.

Regulations are making non-cleared SWAPs capital iinefficient

Non-cleared derivatives rules and the capital inefficiency that has been created are “starting to bite” Citi’s Chris...