More clarity sought on central clearing plans

There seems to be a broad consensus that moving over-the-counter (OTC) derivatives to a system of centralised clearing would help manage both individual counterparty risk and market-wide systemic risk. Less widely agreed upon, however, is the effect such a system would have on trading liquidity, costs, spreads and volume. Global survey findings published last week by Greenwich Associates showed that market participants require more information from regulators about the timing, scope …