NYSE to fare well in rate swap clearing initiative?

The clearing of derivatives is a huge issue right now, but we mainly hear about mega-war over credit default swaps. But the interest rates swap market, in many ways, is just as important, and just as in need of better clearing mechanisms. Enter the NYSE Euronext and the DTCC. They have launched the first clearing service for such swaps with an interesting approach to margining.

The top dog will be Dennis Dutterer, formerly CEO of The Clearing Corporation. New York Portfolio Clearing will provide a "single pot" margining system, which does away with the practice of posting margins for each asset class they want to have cleared, the Financial Times reports. The enhanced margin system will also "allow regulators to monitor market participants' total exposure across multiple interest rate asset classes in real-time." 

For more:
- here's the article

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