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Asia’s young repo market faces new OTC clearing hurdle

The risk of shifting OTC derivatives onto exchanges is that it will fragment an already small market, says JP Morgan.
Asia’s young repo market faces new OTC clearing hurdle

The repurchase market in Asia is small, which means if other regions are a guide, it should expand rapidly. However that progress could be slowed by regulatory efforts around the world to shift more trading and clearing of over-the-counter derivatives onto exchanges, or with centralised counterparties.

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