Some market participants say the conversion of swaps to futures could lead to problems. "As the market gravitates to the cheaper platform -- and it's cheaper because it's unsafe -- that creates risk for everyone," said James Cawley, CEO of Javelin Capital Markets. However, others say swaps continue to provide the best way to manage various exposure, so they will not be completely replaced by futures. "There's obviously a reason the rates-swap market emerged -- it allows very specific contract terms," said James Wallin of AllianceBernstein. "We don't see the futures market replacing that."
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