JSE's rand swap clearing hopes in the balance
Local dealers believe domestic clearing would bifurcate derivatives netting sets
South African dealers are rejecting the Johannesburg Stock Exchange's (JSE) plans for a local clearing service for rand-denominated interest rate swaps, arguing they will have to post more margin if they use it.
Local dealers typically hedge their client business with overseas banks – an estimated 61% of outstanding interdealer trades are executed with international dealers, according to analysis presented by South Africa's National Treasury at a recent conference in Johannesburg, the Emerging
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