11 Pages Posted: 22 Jun 2011
Date Written: April 2011
This note discusses the case for exempting foreign exchange derivatives from recent regulatory requirements for over-the-counter derivatives, including clearing, trade competition, and minimum collateral requirements. My conclusion is that the arguments that have been made for such an exemption are not sufficient. I focus mainly on the question of clearing, which figures prominently in arguments favoring exemption.
Keywords: derivatives, foregin exchange, over-the-counter derivatives, trade competition
JEL Classification: G10, G14, G18, G28, G38
Suggested Citation: Suggested Citation
Duffie, Darrell, On the Clearing of Foreign Exchange Derivatives (April 2011). Rock Center for Corporate Governance at Stanford University Working Paper Series No. 102. Available at SSRN: https://ssrn.com/abstract=1869065 or http://dx.doi.org/10.2139/ssrn.1869065