Malcolm Edey,  Assistant Governor (Financial System), Reserve Bank of Oz.

Main points

– Clearing reduces systemic risk (of course this isn’t nearly as simple as it sounds)

– Clearing is complex (totally agree)

– Clearing might be important to Australia, but our AUD IRS market is small

What countries like Oz are finding, is that creating a CCP for OTC products is fiercely complicated and expensive, and for each regional CCP, reduces netting benefits and increases systemic complexity.

http://www.bis.org/review/r111021d.pdf