Why trade a bilateral Portfolio Swap when you could roll the same basket into a Total Return Future (TRF) wrapper that is centrally cleared at a lower cost and can be cross-margined? That is the lesson that some market participants are finding. Custom baskets represent a significant growth opportunity for the market but will have a long tail of a transition period.
This content requires a Finadium subscription. Articles with an unlocked symbol can be accessed with free registration. Log in or create a free account by signing up here..
