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Entries tagged “Swaps Market”

Dodd-Frank 30 Day Countdown: Day 2

Insight Robin Powers Robin Powers · July 14, 2011

Swaps Experts Say Market Will Grow; Others Differ in Opinion

As the swaps market braces for Dodd-Frank impact, firms and investors differ on the anticipated changes in the newly regulated market.

Citigroup, Inc. recently released a white paper predicting that interest rate and credit default swaps will grow more than 10% by 2013 as trading risk will decrease and price transparency will increase under Dodd-Frank. Citigroup also stated that Clearinghouse increased requirements for margin will likely cause market participants to avoid marginally profitable investments. They estimate that 60% of OTC derivatives market by volume will soon be centrally cleared.

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