SwapClear’s chief executive Michael Davie has said that hype surrounding the competition to provide clearing for interest rate swaps has been blown out of proportion.
Many in the market have predicted a big upswing in business for clearers following the Dodd-Frank Act in the US, which will mandate clearing of all standardised swaps not deemed necessary for hedging. But Davie told FOi: “We've been offering client clearing for a year now. We've got clients live on the service. But the reality is that it will take time for the buy-side to adapt to clearing.”
Davie, who moved from JP Morgan in August, maintained that merely forcing investment firms to clear swaps did not make the decision of where to...