Partner Penny Christophorou was quoted in a Risk.net article discussing how a proposal to overhaul how investors access the services of the sole central counterparty for US Treasuries will do little to increase clearing capacity.
“Nothing stops counterparties from agreeing to execute a Treasury trade and then bringing that trade into their sponsoring member for novation to [the Fixed Income Clearing Corporation],” said Penny. “However, the ‘done away’ piece isn’t developed yet, and certain market participants are hoping that this is what the market moves to.”
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