Ex-Isda risk chief: ditch gross notional thresholds for clearing

The decade-old swaps clearing mandate is not fit for purpose in an era when clearing is concentrated in the hands of a few central counterparties (CCPs) and mediated by only a handful of big banks, a prominent derivatives industry figure has claimed.

In forthcoming research, David Murphy, a visiting professor at the London School of Economics and former head of risk at the International Swaps and Derivatives Association, calls for the over-the-counter clearing mandate to be based on a firm’s