Derivative Clearing in China - How Important Is It?

The diversity of market participants in the derivatives market in china remains low, with commercial banks still serving as the dominant players. A more developed cleared interestrate swap market is probably the most efficient way for these firms to hedge without basis risk. There really is a need for c c p to continuously review and strengthen the risk management framework. The development of the futures intrive law has been characterized by very extensive consultation and outreach to market participants.