Illiquidity means some hedges are no longer possible – GE

End-users unable to execute certain trades as dealers retreat, claims swaps counsel

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Some hedges no longer possible, says GE

Corporates are finding it harder to find liquidity in the over-the-counter derivatives market, forcing some to cut back on their hedging activities, according to a derivatives lawyer at General Electric.

Renuka Gupta, associate general counsel for derivatives and reform implementation at General Electric and a member of the US Coalition of Derivatives End Users, said that while corporates are exempt from mandatory clearing and electronic execution requirements, the increasing regulatory capital

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