Canada has declined to mandate a local CCP for local people, letting the global CCPs provide the necessary services to enable Canada to meet their G20 commitment. Personally I think this is sensible and pragmatic decision, the cost and complexity involved in setting up a CCP for OTC products isn’t trivial and can’t easily be justified by clearing trades solely for domestic business.

I wonder if Australia will follow suit? The story is reported by Jeffrey Hodgson, no relation.

Bank of Canada to allow global OTC derivatives clearing | Business | Reuters.