New derivatives regulations will shift risk rather than eliminate it, says Mark Morris, chief financial officer at Rolls-Royce. "If you try to replace the counterparty risk by using central clearing or some form of posting of collateral, what you're doing is you're replacing counterparty risk with liquidity risk," Morris says, adding that the amount of collateral the regulations would force his company to post would prohibit it from investing in the "real economy."

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