Banks cry foul over LCH compression policy changes
Allocation of compression slots favours TriOptima over competitors, critics say
A fierce row is brewing in the arcane world of cleared swaps compression. LCH has come under fire for proposed changes to the way business slots are allocated between external providers of the critical service, with dealers claiming the plans could stifle competition. Banks are divided, however, on what should be done about it.
The central counterparty’s tiered pricing framework, with smaller providers effectively charged more, comes in for criticism, as does a new conflict resolution
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