ISDA has released a study that expresses concern about a loss of liquidity in noncleared derivatives because of legislation that could prompt some end users to abandon the instruments. "Non-cleared [over-the-counter] derivatives play a vital role in many industries and geographic regions," according to the study. "They are used to manage the risk of changing commodity and energy prices and interest rates. They are used in asset/liability management and to risk manage cash flows and capital raising activities. Any impairment to the liquidity of these tools will affect economic growth, capital investment and job creation." Read ISDA's study.
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