Capco: Swap futures: Why should the buy-side care?

True or false? In the post-EMIR landscape, insurance firms and pension funds are likely to face increased cost from mandatory clearing and margining of their interest rate swaps in order to hedge interest rate risks on their long-term liabilities.

Let’s see if the threat is real. Swap futures provide a greater degree of standardization compared to interest rate swaps. While the latter can be tailored to meet buy-side demands, the listed swap futures increase price transparency and reduce