The US Dodd-Frank Act (DFA) introduced mandatory central clearing of standard (e.g. plain vanilla) swaps for big financial institutions in the US in 2013.

It might be a broad question but: what have been the quantitative concrete impact of these changes for risk managers, given that central clearing impose additional costs? Did these institutions/risk managers adjust their derivatives portfolios and started to use alternatives to swaps if additional costs were too high? Or did they change their risk management strategies?



Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Browse other questions tagged or ask your own question.