A clearing broker for swaps is a clearing member of a swap clearing house that clears its clients’ swaps, posts their margin to the clearing house, and guarantees their performance to it; in the United States it is a futures commission merchant registered for swaps.
Contoh
Example 28.6 (Three routes)
In the chapter’s illustrative model, renting costs USD 0.5 million a year fixed and 11.5 basis points a year per dollar of repo balance, including the swaps and funded margin; buying costs USD 8 million fixed and 5.9 basis points, including the capital in the clearing fund; bilateral costs 0.2 million and 18.5 basis points. A fund with USD 5 billion of repo and 10 billion of swaps pays 6.25 million a year renting, 10.95 million buying and 9.45 million bilaterally. Bilateral beats renting only below USD 0.43 billion of repo; buying beats renting above USD 13.4 billion (Figure 28.3).