As foreign exchange finds itself under the same legislative spotlight as other asset classes, it looks as if only options and non-deliverable forwards (NDFs) will be have to be cleared through a central counterparty (CCP) in the US. But such legislation might prove very difficult to enforce.
Most banks are keeping quiet on the matter, given the sensitivities around the taxpayer support they have received. However, mandated clearing of a global product through for-profit entities such as CME Clearing, which are also not multinational, is starting to look increasingly unrealistic.
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