Three CCPs per asset class optimal, say market structure experts
Three central counterparties (CCPs) offering clearing services in a particular asset class would ensure genuine competition while minimising the risk of an excessively concentrated market structure, according to speakers at the Marketforce OTC Derivatives Summit in London yesterday.
"Economic theory suggests that three players would represent an ideal number of providers. Having more than 10 clearing houses would not help, as sustainable competition can only be measured when players offer easily
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