# What Are the Key Differences in Counterparty Selection Strategy for Cleared Vs Uncleared Swaps? ▴ Question

**Published:** 2025-08-01
**Categories:** Question

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## Concept

The decision architecture for selecting a swap counterparty is fundamentally redefined by the presence or absence of a central clearinghouse. This structural distinction dictates the entire [risk management](https://prime.greeks.live/area/risk-management/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) and operational paradigm. For a cleared swap, the [counterparty selection](https://prime.greeks.live/area/counterparty-selection/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) process is an exercise in choosing an optimal gateway to a centralized guarantor. Your direct trading partner’s identity becomes secondary because the clearinghouse, through a process called novation, steps in to become the counterparty to every trade.

The core strategic objective transforms into evaluating the intermediaries, the [clearing members](https://prime.greeks.live/question/what-are-the-primary-ways-a-clearing-members-failure-can-transmit-risk-to-other-members/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) or Futures Commission Merchants (FCMs), that provide access to this centralized system. The analysis centers on their operational efficiency, fee structures, and technological robustness. The system itself, the [central counterparty](https://prime.greeks.live/area/central-counterparty/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (CCP), absorbs and mutualizes the credit risk.

In the domain of uncleared, or bilateral, swaps, the strategic imperative is entirely different. Here, you are directly exposed to the creditworthiness of the entity on the other side of the trade. The [counterparty selection strategy](https://prime.greeks.live/question/how-does-counterparty-selection-in-an-rfq-mitigate-adverse-selection-risk/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is a deep, continuous process of bilateral risk assessment. It involves granular analysis of a counterparty’s financial health, the meticulous negotiation of legal agreements like the [ISDA Master Agreement](https://prime.greeks.live/area/isda-master-agreement/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) and its accompanying Credit Support Annex (CSA), and the establishment of robust operational workflows for managing collateral directly with that specific entity.

Every new relationship represents a discrete island of [credit risk](https://prime.greeks.live/area/credit-risk/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) that must be independently managed. The focus is on the individual entity, its stability, and the legal and operational framework binding your two firms together.

> The fundamental division in counterparty strategy lies in whether you are managing access to a centralized risk pool or managing direct, bilateral credit exposure.

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## The Central Counterparty as the System

Understanding the role of the Central Counterparty (CCP) is essential to grasping the strategic shift. A CCP functions as the buyer to every seller and the seller to every buyer for cleared trades. This is achieved through [novation](https://prime.greeks.live/area/novation/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), where the original bilateral contract between two parties is legally replaced by two new contracts ▴ one between the first party and the CCP, and another between the second party and the CCP. This legal substitution effectively neutralizes the [direct credit exposure](https://prime.greeks.live/question/can-an-esb-be-adequately-hardened-for-direct-internet-exposure-in-legacy-systems/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) between the original trading parties.

The risk is transferred to the CCP, which manages it through a multi-layered defense system. This system includes collecting initial and [variation margin](https://prime.greeks.live/area/variation-margin/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) from all clearing members, maintaining a default fund contributed to by all members, and holding its own capital as a final buffer. The strategy, therefore, becomes about ensuring reliable access to this fortress of risk management, not about inspecting the credit quality of every individual you trade with.

![Symmetrical internal components, light green and white, converge at central blue nodes. This abstract representation embodies a Principal's operational framework, enabling high-fidelity execution of institutional digital asset derivatives via advanced RFQ protocols, optimizing market microstructure for price discovery](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-engine-core.jpg)

## Bilateral Risk in Uncleared Swaps

Without a CCP, the risk landscape is fragmented. Each counterparty relationship is a self-contained system. The [selection strategy](https://prime.greeks.live/question/how-does-dealer-selection-influence-the-severity-of-adverse-selection-in-illiquid-markets/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) must account for the full spectrum of bilateral risks. This includes not just the potential for default (credit risk) but also operational risk (the counterparty’s ability to manage collateral and settlements accurately), legal risk (the enforceability of netting and collateral agreements in a default scenario), and liquidity risk (the ability to exit a bespoke trade if the original counterparty is unwilling or unable to provide a competitive price).

The introduction of mandatory [Uncleared Margin Rules](https://prime.greeks.live/area/uncleared-margin-rules/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (UMR) for many participants has further intensified the operational demands, requiring the bilateral exchange of [initial margin](https://prime.greeks.live/area/initial-margin/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), a process that was historically less common for many end-users. This makes the selection of an operationally sophisticated counterparty paramount.

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## Strategy

The strategic framework for counterparty selection diverges entirely between cleared and [uncleared swaps](https://prime.greeks.live/question/what-are-the-primary-differences-in-counterparty-risk-between-cleared-and-uncleared-equity-swaps/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), moving from a focus on systemic access to one of bilateral due diligence. The choice of market structure dictates the nature of the risks that must be managed and, consequently, the strategic priorities of the [selection process](https://prime.greeks.live/question/how-does-dealer-selection-influence-the-severity-of-adverse-selection-in-illiquid-markets/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite).

![A sophisticated modular apparatus, likely a Prime RFQ component, showcases high-fidelity execution capabilities. Its interconnected sections, featuring a central glowing intelligence layer, suggest a robust RFQ protocol engine](https://options.greeks.live/wp-content/uploads/2025/07/institutional-rfq-engine-core-for-digital-asset-derivatives-high-fidelity-execution-protocols.jpg)

## Counterparty Strategy for Cleared Swaps

In the cleared environment, the concept of a “counterparty” expands. While you may execute a trade with a specific dealer, the ultimate credit risk is borne by the Central Counterparty (CCP). The selection strategy therefore pivots to choosing the right clearing member, typically a [Futures Commission Merchant](https://prime.greeks.live/area/futures-commission-merchant/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (FCM), who acts as your agent and provides access to the CCP.

The primary goal is to secure reliable, cost-effective, and operationally seamless access to the clearing system. The [financial health](https://prime.greeks.live/question/how-does-the-rise-of-systematic-internalisers-affect-the-overall-health-of-price-discovery-in-equity-markets/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) of the individual trading partner is a far less significant concern compared to the stability and service quality of your chosen FCM.

Key strategic considerations for selecting a clearing member include:

- **Financial Stability and Segregation Models** The FCM’s own financial health is critical, as their failure could disrupt access to your positions and funds, even if the CCP itself remains sound. Evaluating the FCM’s capital adequacy, [credit ratings](https://prime.greeks.live/question/how-do-issuers-incorporate-credit-risk-and-hedging-costs-into-a-structured-product-quote/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), and risk management practices is a primary step. Additionally, understanding the legal and operational models they offer for segregating client assets is vital for asset protection.

- **Cost Structure** The fees associated with clearing can be complex, encompassing ticket charges, clearing fees, and financing costs for margin. A strategic analysis involves modeling these costs across different potential FCMs to find the most efficient structure for your trading volume and style.

- **Technological Integration and Reporting** The efficiency of your operations depends on the FCM’s technology platform. This includes the ease of submitting trades for clearing, the quality and timeliness of reporting on margin and positions, and the ability to integrate with your own internal systems.

- **Access to Multiple CCPs** Different CCPs specialize in clearing different products or regions. A strategy that involves a diverse range of swaps requires an FCM that provides access to all relevant clearinghouses, preventing the need to establish multiple, fragmented clearing relationships.

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## How Does Clearing Impact Pricing and Liquidity?

Central clearing standardizes key aspects of the trading relationship, such as collateral agreements and discount curves, which leads to more consistent pricing across dealers. It also enhances liquidity by removing the lock-in effect; since the trade is novated to the CCP, you can enter a position with one dealer and exit it with another, fostering greater competition and tighter spreads.

### Table 1 ▴ Strategic Evaluation Of Clearing Members (FCMs)

| Evaluation Criterion | Strategic Importance | Key Metrics and Questions |
| --- | --- | --- |
| Financial Health | High ▴ Ensures the stability of your gateway to the CCP and protection of your assets. | What are the FCM’s regulatory capital levels? What are their credit ratings from major agencies? What is the structure of their client asset protection model? |
| Cost Efficiency | Medium-High ▴ Directly impacts the profitability of trading strategies. | What is the all-in cost per trade (ticket fees, clearing fees)? What are the financing rates (spreads) on cash balances and collateral transformations? |
| Operational Capability | High ▴ Determines the efficiency and accuracy of daily processing. | How robust is the reporting platform? Does it support automated workflows? What is the firm’s track record on resolving trade breaks and margin disputes? |
| CCP Access | Medium ▴ Depends on the breadth of products traded. | Which CCPs does the FCM provide access to? Are they a direct member or do they clear through another entity? What are the service level agreements for trade submission? |

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## Counterparty Strategy for Uncleared Swaps

The strategy for uncleared swaps is a direct and intensive exercise in counterparty risk management. Each new counterparty relationship must be evaluated on its own merits, as you are accepting direct [credit exposure](https://prime.greeks.live/question/how-does-a-credit-support-annex-directly-reduce-counterparty-exposure-in-volatile-markets/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) to that entity. The goal is to build a portfolio of counterparties that provides the necessary liquidity and pricing while remaining within the firm’s overall credit risk appetite. This requires a multi-disciplinary approach involving credit, legal, and operations teams.

> For uncleared swaps, the selection process is an ongoing, dynamic assessment of each counterparty’s individual credit and operational integrity.

The core components of this strategy are:

- **Credit Risk Assessment** This is the foundation of the selection process. It involves a thorough analysis of a potential counterparty’s financial statements, credit ratings, and market-implied measures of credit risk (like credit default swap spreads). The process results in the assignment of an [internal credit](https://prime.greeks.live/question/how-does-an-rfq-system-integrate-with-internal-credit-limit-monitoring/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) limit for that counterparty.

- **Legal Documentation and Negotiation** The ISDA [Master Agreement](https://prime.greeks.live/question/what-are-the-key-differences-between-a-prime-brokerage-agreement-and-an-isda-master-agreement/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) and the [Credit Support Annex](https://prime.greeks.live/area/credit-support-annex/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (CSA) are the legal bedrock of the relationship. The negotiation of these documents is a key strategic activity. Terms to be negotiated include the events of default, termination provisions, and, most importantly, the specifics of collateralization (e.g. eligible collateral types, thresholds, and initial margin requirements).

- **Operational Due Diligence** A counterparty’s operational capacity is just as important as its creditworthiness, especially under the [Uncleared Margin](https://prime.greeks.live/question/how-does-the-uncleared-margin-rule-impact-the-choice-between-bilateral-and-centrally-cleared-trading-models/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) Rules. You must assess their ability to accurately calculate and exchange margin calls on a daily basis, manage complex [collateral types](https://prime.greeks.live/question/what-is-the-difference-between-collateral-optimization-and-collateral-transformation-in-practice/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), and resolve disputes efficiently. A failure in their operations can create significant risk and cost.

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## What Is the Role of the Credit Support Annex (CSA)?

The CSA is a legal document that defines the collateral terms for an uncleared swap relationship. It is the primary tool for mitigating bilateral credit risk. Key negotiated terms within the CSA determine how much risk is offset by collateral.

These terms include the threshold (the amount of unsecured exposure allowed before collateral must be posted), the minimum transfer amount, and the types of eligible collateral (cash, government bonds, etc.) and any associated haircuts. A robust CSA is a cornerstone of a sound uncleared [counterparty strategy](https://prime.greeks.live/question/how-should-a-counterparty-scorecard-adapt-for-different-industries-and-counterparty-types/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite).

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## Execution

The execution of a counterparty selection strategy manifests in distinct operational workflows and technological architectures for cleared and uncleared swaps. The procedural steps, required infrastructure, and personnel involvement differ profoundly, reflecting the underlying risk management philosophy of each market structure.

![A crystalline sphere, representing aggregated price discovery and implied volatility, rests precisely on a secure execution rail. This symbolizes a Principal's high-fidelity execution within a sophisticated digital asset derivatives framework, connecting a prime brokerage gateway to a robust liquidity pipeline, ensuring atomic settlement and minimal slippage for institutional block trades](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-execution-platform-optimizing-liquidity-and-risk-management-through-advanced-protocols.jpg)

## Execution Workflow for Cleared Swaps

The execution process for [cleared swaps](https://prime.greeks.live/question/what-are-the-primary-differences-in-counterparty-risk-between-cleared-and-uncleared-equity-swaps/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is designed for efficiency and scale, relying on standardization and the central role of the CCP and FCM. The focus is on straight-through processing (STP) and minimizing operational friction.

The lifecycle of a cleared swap follows a defined, multi-stage path:

- **FCM Onboarding and Setup** Before any trading can occur, a legal and operational relationship with a chosen FCM must be established. This involves [due diligence](https://prime.greeks.live/area/due-diligence/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), signing the clearing agreement, and setting up accounts for position and collateral segregation. This is the execution of the selection strategy.

- **Trade Execution** The swap is executed with a counterparty, typically a dealer, on a [swap execution facility](https://prime.greeks.live/area/swap-execution-facility/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (SEF) or via other electronic platforms. At the point of execution, the parties agree that the trade will be cleared.

- **Submission to CCP** Immediately following execution, the trade details are submitted to the designated CCP. This is typically handled by the SEF or the executing parties, with instructions for the trade to be allocated to their respective FCMs.

- **Novation and Confirmation** The CCP accepts the trade and performs novation. The original bilateral trade is extinguished and replaced by two new trades with the CCP as the central counterparty. The CCP then sends a confirmation back to the FCMs, who in turn confirm the cleared position to their clients.

- **Ongoing Margin Management** The FCM manages all margin flows with the CCP on behalf of the client. The CCP calculates variation margin daily (and sometimes intraday) to cover changes in the swap’s market value, and also holds initial margin to buffer against potential future exposure. The FCM calls for or passes back margin to the client based on these CCP requirements.

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## Execution Workflow for Uncleared Swaps

The execution of an uncleared swap relationship is a more manual, resource-intensive, and bespoke process. It requires significant internal capabilities in credit, legal, and [collateral management](https://prime.greeks.live/area/collateral-management/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite).

The workflow involves a greater degree of bilateral interaction and negotiation:

- **Counterparty Due Diligence and Approval** A potential counterparty must be vetted by an internal credit team. This involves financial analysis and the establishment of a credit line, which defines the maximum amount of risk the firm is willing to take with that entity.

- **ISDA and CSA Negotiation** Legal teams from both parties negotiate the terms of the ISDA Master Agreement and the [Credit Support](https://prime.greeks.live/question/how-does-the-2002-isda-framework-influence-the-negotiation-of-credit-support-annexes/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) Annex. This can be a lengthy process, as it defines the critical risk parameters of the relationship, such as collateral types, thresholds, and [dispute resolution](https://prime.greeks.live/question/how-does-the-2002-close-out-amount-standard-affect-dispute-resolution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) mechanisms.

- **Trade Execution and Confirmation** The swap is negotiated and executed bilaterally. Following execution, the two parties must confirm the economic terms of the trade directly with each other, a process that can be manual or semi-automated.

- **Bilateral Margin Calculation and Exchange** This is the most operationally intensive part of the lifecycle. Both parties must calculate their exposure to each other and agree on the amount of variation and initial margin to be exchanged. This requires sophisticated internal models (like SIMM for initial margin) and a dedicated collateral management team to issue, receive, and respond to margin calls.

- **Dispute Resolution and Collateral Management** If the two parties’ calculations of exposure or margin requirements differ, a dispute resolution process must be initiated. The collateral management team is also responsible for holding, valuing, and managing the collateral received from the counterparty, including handling substitutions and corporate actions.

> Executing an uncleared swap strategy requires building and maintaining a dedicated internal infrastructure for credit risk and collateral management.

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## How Do Margin Rules Change the Execution Process?

The implementation of global Uncleared [Margin Rules](https://prime.greeks.live/question/what-are-the-specific-eligibility-requirements-for-a-portfolio-margin-account-under-finra-rules/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (UMR) has been a significant driver of operational complexity for uncleared swaps. These rules mandate the exchange of initial margin (IM) for most uncleared derivatives between covered financial entities. This has forced firms to implement sophisticated calculation models (such as the ISDA Standard Initial Margin Model, or SIMM) and establish third-party custody accounts for segregating IM, adding significant cost and operational burden to the execution of an uncleared strategy.

### Table 2 ▴ Operational Execution Comparison Cleared Vs Uncleared Swaps

| Operational Step | Cleared Swap Execution | Uncleared Swap Execution |
| --- | --- | --- |
| Counterparty Onboarding | Establish relationship with one or more FCMs. Standardized agreements. | Perform credit analysis and negotiate ISDA/CSA for each individual counterparty. Highly bespoke. |
| Risk Mitigation | Handled by CCP through multilateral netting, default fund, and margin. | Bilateral collateralization defined by the CSA. Direct exposure to counterparty credit and operational failure. |
| Margin Process | Standardized CCP calculation. Margin flows managed by FCM. | Bilateral calculation and agreement. Requires internal models (e.g. SIMM) and dedicated operational teams. |
| Required Infrastructure | Connectivity to FCM(s) and reporting platforms. | Internal credit risk systems, legal expertise, collateral management platforms, and custody relationships. |
| Scalability | High. Adding new trading partners is operationally simple. | Low. Each new counterparty requires a full due diligence and legal negotiation process. |

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## References

- OpenGamma. “Cleared Vs Uncleared Margin ▴ What Firms Need To Consider.” 16 August 2019.

- International Swaps and Derivatives Association. “ISDA Master Agreement.” 2002.

- Commodity Futures Trading Commission. “Explanatory Notes, CFTC Swaps Report.”

- Hull, John C. “Options, Futures, and Other Derivatives.” Pearson, 10th Edition, 2018.

- Gregory, Jon. “The xVA Challenge ▴ Counterparty Credit Risk, Funding, Collateral, and Capital.” Wiley, 3rd Edition, 2015.

![A precise metallic central hub with sharp, grey angular blades signifies high-fidelity execution and smart order routing. Intersecting transparent teal planes represent layered liquidity pools and multi-leg spread structures, illustrating complex market microstructure for efficient price discovery within institutional digital asset derivatives RFQ protocols](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-for-high-fidelity-execution-across-market-microstructure-dynamics.jpg)

## Reflection

The decision to engage in cleared versus uncleared swaps is a foundational choice about the architecture of your firm’s risk management system. It defines where operational resources are allocated, where legal expertise is focused, and what type of risks are accepted. Viewing this choice through a systemic lens allows a firm to move beyond a simple cost-benefit analysis of individual trades. It becomes a question of institutional design.

Does your operational framework possess the robustness to manage dozens of distinct, [bilateral risk](https://prime.greeks.live/area/bilateral-risk/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) relationships, each with its own legal and collateral complexities? Or is your strategic advantage better served by leveraging the standardized, scalable infrastructure of central clearing, focusing your resources on alpha generation rather than bilateral risk mitigation? The optimal strategy is a reflection of your firm’s core capabilities and its ultimate position within the market ecosystem.

![An exploded view reveals the precision engineering of an institutional digital asset derivatives trading platform, showcasing layered components for high-fidelity execution and RFQ protocol management. This architecture facilitates aggregated liquidity, optimal price discovery, and robust portfolio margin calculations, minimizing slippage and counterparty risk](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-execution-engine-microstructure.jpg)

## Glossary

<a href="https://prime.greeks.live/area/counterparty-selection/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
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## Counterparty Selection

Meaning ▴ Counterparty selection refers to the systematic process of identifying, evaluating, and engaging specific entities for trade execution, risk transfer, or service provision, based on predefined criteria such as creditworthiness, liquidity provision, operational reliability, and pricing competitiveness within a digital asset derivatives ecosystem. </a><a href="https://prime.greeks.live/area/risk-management/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Geometric planes and transparent spheres represent complex market microstructure. A central luminous core signifies efficient price discovery and atomic settlement via RFQ protocol](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-microstructure-4.jpg)

## Risk Management

Meaning ▴ Risk Management is the systematic process of identifying, assessing, and mitigating potential financial exposures and operational vulnerabilities within an institutional trading framework. </a><a href="https://prime.greeks.live/area/central-counterparty/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
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## Central Counterparty

Meaning ▴ A Central Counterparty, or CCP, functions as an intermediary in financial transactions, positioning itself between original counterparties to assume credit risk. </a><a href="https://prime.greeks.live/question/what-are-the-primary-ways-a-clearing-members-failure-can-transmit-risk-to-other-members/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek spherical device with a central teal-glowing display, embodying an Institutional Digital Asset RFQ intelligence layer. Its robust design signifies a Prime RFQ for high-fidelity execution, enabling precise price discovery and optimal liquidity aggregation across complex market microstructure](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-rfq-microstructure-price-discovery-prime-os.jpg)

## Clearing Members

A clearing member's failure transmits risk via a default waterfall, collateral fire sales, and auction failures, testing the system's core. </a><a href="https://prime.greeks.live/question/how-does-counterparty-selection-in-an-rfq-mitigate-adverse-selection-risk/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, metallic mechanism with a luminous blue sphere at its core represents a Liquidity Pool within a Crypto Derivatives OS. Surrounding rings symbolize intricate Market Microstructure, facilitating RFQ Protocol and High-Fidelity Execution](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-crypto-derivatives-rfq-protocol-core-mechanism.jpg)

## Counterparty Selection Strategy

Selective disclosure of trade intent to a scored and curated set of counterparties minimizes information leakage and mitigates pricing risk. </a><a href="https://prime.greeks.live/area/isda-master-agreement/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract depiction of an institutional digital asset derivatives execution system. A central market microstructure wheel supports a Prime RFQ framework, revealing an algorithmic trading engine for high-fidelity execution of multi-leg spreads and block trades via advanced RFQ protocols, optimizing capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-rfq-execution-system-1.jpg)

## Isda Master Agreement

Meaning ▴ The ISDA Master Agreement is a standardized contractual framework for privately negotiated over-the-counter (OTC) derivatives transactions, establishing common terms for a wide array of financial instruments. </a><a href="https://prime.greeks.live/area/credit-risk/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, abstract system interface with a central spherical lens representing real-time Price Discovery and Implied Volatility analysis for institutional Digital Asset Derivatives. Its precise contours signify High-Fidelity Execution and robust RFQ protocol orchestration, managing latent liquidity and minimizing slippage for optimized Alpha Generation](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-institutional-digital-asset-derivatives-execution-via-optimized-rfq-protocols-enhancing-market-microstructure.jpg)

## Credit Risk

Meaning ▴ Credit risk quantifies the potential financial loss arising from a counterparty's failure to fulfill its contractual obligations within a transaction. </a><a href="https://prime.greeks.live/question/can-an-esb-be-adequately-hardened-for-direct-internet-exposure-in-legacy-systems/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precise stack of multi-layered circular components visually representing a sophisticated Principal Digital Asset RFQ framework. Each distinct layer signifies a critical component within market microstructure for high-fidelity execution of institutional digital asset derivatives, embodying liquidity aggregation across dark pools, enabling private quotation and atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/principal-digital-asset-rfq-protocol-layers-for-high-fidelity-execution.jpg)

## Direct Credit Exposure

Hardening an internet-facing ESB is a high-risk, architecturally flawed strategy; modern security demands isolation via a Zero Trust framework. </a><a href="https://prime.greeks.live/area/novation/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A glowing central ring, representing RFQ protocol for private quotation and aggregated inquiry, is integrated into a spherical execution engine. This system, embedded within a textured Prime RFQ conduit, signifies a secure data pipeline for institutional digital asset derivatives block trades, leveraging market microstructure for high-fidelity execution](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-system-for-institutional-high-fidelity-execution.jpg)

## Novation

Meaning ▴ Novation defines the process of substituting an existing contractual obligation with a new one, effectively transferring the rights and duties of one party to a new party, thereby extinguishing the original contract. </a><a href="https://prime.greeks.live/area/variation-margin/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A modular component, resembling an RFQ gateway, with multiple connection points, intersects a high-fidelity execution pathway. This pathway extends towards a deep, optimized liquidity pool, illustrating robust market microstructure for institutional digital asset derivatives trading and atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/rfq-protocol-layer-connecting-institutional-digital-asset-liquidity-pools.jpg)

## Variation Margin

Meaning ▴ Variation Margin represents the daily settlement of unrealized gains and losses on open derivatives positions, particularly within centrally cleared markets. </a><a href="https://prime.greeks.live/question/how-does-dealer-selection-influence-the-severity-of-adverse-selection-in-illiquid-markets/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precision metallic mechanism, with a central shaft, multi-pronged component, and blue-tipped element, embodies the market microstructure of an institutional-grade RFQ protocol. It represents high-fidelity execution, liquidity aggregation, and atomic settlement within a Prime RFQ for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/08/prime-os-core-rfq-engine-microstructure-for-digital-asset-derivatives.jpg)

## Selection Strategy

Strategic dealer selection is a control system that regulates information flow to mitigate adverse selection in illiquid markets. </a><a href="https://prime.greeks.live/area/uncleared-margin-rules/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, modular metallic component, split beige and teal, features a central glossy black sphere. Precision details evoke an institutional grade Prime RFQ intelligence layer module](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-core-precision-platform-system.jpg)

## Uncleared Margin Rules

Meaning ▴ Uncleared Margin Rules (UMR) represent a global regulatory framework mandating the bilateral exchange of initial margin and variation margin for over-the-counter (OTC) derivative transactions not cleared through a central counterparty (CCP). </a><a href="https://prime.greeks.live/area/initial-margin/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A futuristic, intricate central mechanism with luminous blue accents represents a Prime RFQ for Digital Asset Derivatives Price Discovery. Four sleek, curved panels extending outwards signify diverse Liquidity Pools and RFQ channels for Block Trade High-Fidelity Execution, minimizing Slippage and Latency in Market Microstructure operations](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-platform-2.jpg)

## Initial Margin

Meaning ▴ Initial Margin is the collateral required by a clearing house or broker from a counterparty to open and maintain a derivatives position. </a><a href="https://prime.greeks.live/question/how-does-dealer-selection-influence-the-severity-of-adverse-selection-in-illiquid-markets/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A symmetrical, star-shaped Prime RFQ engine with four translucent blades symbolizes multi-leg spread execution and diverse liquidity pools. Its central core represents price discovery for aggregated inquiry, ensuring high-fidelity execution within a secure market microstructure via smart order routing for block trades](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-engine-prime-os-1.jpg)

## Selection Process

Strategic dealer selection is a control system that regulates information flow to mitigate adverse selection in illiquid markets. </a><a href="https://prime.greeks.live/question/what-are-the-primary-differences-in-counterparty-risk-between-cleared-and-uncleared-equity-swaps/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, dark sphere, symbolizing the Intelligence Layer of a Prime RFQ, rests on a sophisticated institutional grade platform. Its surface displays volatility surface data, hinting at quantitative analysis for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-platform-intelligence-layer-optimizing-high-fidelity-execution.jpg)

## Uncleared Swaps

Cleared swaps centralize and mutualize risk through a CCP; uncleared swaps manage it bilaterally, demanding direct collateralization. </a><a href="https://prime.greeks.live/area/futures-commission-merchant/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A central Prime RFQ core powers institutional digital asset derivatives. Translucent conduits signify high-fidelity execution and smart order routing for RFQ block trades](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-liquidity-aggregation-engine.jpg)

## Futures Commission Merchant

Meaning ▴ A Futures Commission Merchant (FCM) functions as a regulated financial intermediary that solicits or accepts orders for the purchase or sale of futures contracts, options on futures, or swaps, and accepts money or other assets from customers to support such orders. </a><a href="https://prime.greeks.live/question/how-does-the-rise-of-systematic-internalisers-affect-the-overall-health-of-price-discovery-in-equity-markets/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, multi-layered digital asset derivatives platform highlights a teal sphere, symbolizing a core liquidity pool or atomic settlement node. The perforated white interface represents an RFQ protocol's aggregated inquiry points for multi-leg spread execution, reflecting precise market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-core-execution-system.jpg)

## Financial Health

The rise of Systematic Internalisers alters equity price discovery by segmenting order flow, which can enhance execution for some while potentially degrading the public price signal for all. </a><a href="https://prime.greeks.live/question/how-do-issuers-incorporate-credit-risk-and-hedging-costs-into-a-structured-product-quote/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Smooth, glossy, multi-colored discs stack irregularly, topped by a dome. This embodies institutional digital asset derivatives market microstructure, with RFQ protocols facilitating aggregated inquiry for multi-leg spread execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine-for-prime-os-best-execution.jpg)

## Credit Ratings

An issuer's quote integrates credit risk and hedging costs via valuation adjustments (xVA) applied to a derivative's theoretical price. </a><a href="https://prime.greeks.live/question/how-does-a-credit-support-annex-directly-reduce-counterparty-exposure-in-volatile-markets/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A dark, precision-engineered core system, with metallic rings and an active segment, represents a Prime RFQ for institutional digital asset derivatives. Its transparent, faceted shaft symbolizes high-fidelity RFQ protocol execution, real-time price discovery, and atomic settlement, ensuring capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-core-for-high-fidelity-rfq-protocol-execution-and-atomic-settlement.jpg)

## Credit Exposure

A Credit Support Annex is a protocol that systematically reduces counterparty risk by mandating collateral transfers against MTM exposure. </a><a href="https://prime.greeks.live/question/how-does-an-rfq-system-integrate-with-internal-credit-limit-monitoring/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A light sphere, representing a Principal's digital asset, is integrated into an angular blue RFQ protocol framework. Sharp fins symbolize high-fidelity execution and price discovery](https://options.greeks.live/wp-content/uploads/2025/07/principals-core-asset-rfq-protocol-framework-for-digital-derivatives.jpg)

## Internal Credit

An RFQ system's integration with credit monitoring embeds real-time risk assessment directly into the pre-trade workflow. </a><a href="https://prime.greeks.live/area/credit-support-annex/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precisely engineered central blue hub anchors segmented grey and blue components, symbolizing a robust Prime RFQ for institutional trading of digital asset derivatives. This structure represents a sophisticated RFQ protocol engine, optimizing liquidity pool aggregation and price discovery through advanced market microstructure for high-fidelity execution and private quotation](https://options.greeks.live/wp-content/uploads/2025/08/prime-os-digital-asset-derivatives-rfq-execution-core-systemic-hub.jpg)

## Credit Support Annex

Meaning ▴ The Credit Support Annex, or CSA, is a legal document forming part of the ISDA Master Agreement, specifically designed to govern the exchange of collateral between two counterparties in over-the-counter derivative transactions. </a><a href="https://prime.greeks.live/question/what-are-the-key-differences-between-a-prime-brokerage-agreement-and-an-isda-master-agreement/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, angular device with a prominent, reflective teal lens. This Institutional Grade Private Quotation Gateway embodies High-Fidelity Execution via Optimized RFQ Protocol for Digital Asset Derivatives](https://options.greeks.live/wp-content/uploads/2025/08/institutional-crypto-derivatives-rfq-high-fidelity-execution-gateway.jpg)

## Master Agreement

A Prime Brokerage Agreement is a centralized service contract; an ISDA Master Agreement is a standardized bilateral derivatives protocol. </a><a href="https://prime.greeks.live/question/how-does-the-uncleared-margin-rule-impact-the-choice-between-bilateral-and-centrally-cleared-trading-models/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Two high-gloss, white cylindrical execution channels with dark, circular apertures and secure bolted flanges, representing robust institutional-grade infrastructure for digital asset derivatives. These conduits facilitate precise RFQ protocols, ensuring optimal liquidity aggregation and high-fidelity execution within a proprietary Prime RFQ environment](https://options.greeks.live/wp-content/uploads/2025/08/institutional-grade-execution-channels-enabling-private-quotation-and-optimal-liquidity-aggregation-for-high-fidelity-digital-asset-derivatives-rfq-protocols-on-prime-os.jpg)

## Uncleared Margin

The Uncleared Margin Rule raises bilateral trading costs, making central clearing the more capital-efficient model for standardized derivatives. </a><a href="https://prime.greeks.live/question/what-is-the-difference-between-collateral-optimization-and-collateral-transformation-in-practice/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A central RFQ aggregation engine radiates segments, symbolizing distinct liquidity pools and market makers. This depicts multi-dealer RFQ protocol orchestration for high-fidelity price discovery in digital asset derivatives, highlighting diverse counterparty risk profiles and algorithmic pricing grids](https://options.greeks.live/wp-content/uploads/2025/07/centralized-digital-asset-rfq-orchestration-for-multi-venue-liquidity-aggregation-and-high-fidelity-execution-across-diverse-counterparties.jpg)

## Collateral Types

Collateral optimization internally allocates existing assets for peak efficiency; transformation externally swaps them to meet high-quality demands. </a><a href="https://prime.greeks.live/question/how-should-a-counterparty-scorecard-adapt-for-different-industries-and-counterparty-types/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A central processing core with intersecting, transparent structures revealing intricate internal components and blue data flows. This symbolizes an institutional digital asset derivatives platform's Prime RFQ, orchestrating high-fidelity execution, managing aggregated RFQ inquiries, and ensuring atomic settlement within dynamic market microstructure, optimizing capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-trading-system-facilitating-high-fidelity-rfq-protocol-optimization-for-best-execution-and-atomic-settlement.jpg)

## Counterparty Strategy

An adaptive counterparty scorecard is a modular risk system, dynamically weighting factors by industry and entity type for precise assessment. </a><a href="https://prime.greeks.live/question/what-are-the-primary-differences-in-counterparty-risk-between-cleared-and-uncleared-equity-swaps/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Central axis, transparent geometric planes, coiled core. Visualizes institutional RFQ protocol for digital asset derivatives, enabling high-fidelity execution of multi-leg options spreads and price discovery](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-engine-2.jpg)

## Cleared Swaps

Cleared swaps centralize and mutualize risk through a CCP; uncleared swaps manage it bilaterally, demanding direct collateralization. </a><a href="https://prime.greeks.live/area/due-diligence/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![An arc of interlocking, alternating pale green and dark grey segments, with black dots on light segments. This symbolizes a modular RFQ protocol for institutional digital asset derivatives, representing discrete private quotation phases or aggregated inquiry nodes](https://options.greeks.live/wp-content/uploads/2025/07/modular-rfq-protocol-segments-for-institutional-digital-asset-derivatives.jpg)

## Due Diligence

Meaning ▴ Due diligence refers to the systematic investigation and verification of facts pertaining to a target entity, asset, or counterparty before a financial commitment or strategic decision is executed. </a><a href="https://prime.greeks.live/area/swap-execution-facility/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Central polished disc, with contrasting segments, represents Institutional Digital Asset Derivatives Prime RFQ core. A textured rod signifies RFQ Protocol High-Fidelity Execution and Low Latency Market Microstructure data flow to the Quantitative Analysis Engine for Price Discovery](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-core-system-high-fidelity.jpg)

## Swap Execution Facility

Meaning ▴ A Swap Execution Facility (SEF) is a regulated electronic trading platform for uncleared swap contracts. </a><a href="https://prime.greeks.live/area/collateral-management/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precise central mechanism, representing an institutional RFQ engine, is bisected by a luminous teal liquidity pipeline. This visualizes high-fidelity execution for digital asset derivatives, enabling precise price discovery and atomic settlement within an optimized market microstructure for multi-leg spreads](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-core-execution-system-1.jpg)

## Collateral Management

Meaning ▴ Collateral Management is the systematic process of monitoring, valuing, and exchanging assets to secure financial obligations, primarily within derivatives, repurchase agreements, and securities lending transactions. </a><a href="https://prime.greeks.live/question/how-does-the-2002-close-out-amount-standard-affect-dispute-resolution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Precisely engineered circular beige, grey, and blue modules stack tilted on a dark base. A central aperture signifies the core RFQ protocol engine](https://options.greeks.live/wp-content/uploads/2025/07/core-prime-os-rfq-engine-digital-asset-derivatives-trading-system-execution.jpg)

## Dispute Resolution

The 2002 Close-Out standard mandates an objective, evidence-based valuation, transforming dispute resolution into a test of procedural integrity. </a><a href="https://prime.greeks.live/question/how-does-the-2002-isda-framework-influence-the-negotiation-of-credit-support-annexes/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A transparent, blue-tinted sphere, anchored to a metallic base on a light surface, symbolizes an RFQ inquiry for digital asset derivatives. A fine line represents low-latency FIX Protocol for high-fidelity execution, optimizing price discovery in market microstructure via Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-rfq-protocol-sphere-high-fidelity-execution-gateway.jpg)

## Credit Support

The 2002 ISDA framework imposes a disciplined risk architecture that elevates CSA negotiations from a task to a core strategic function. </a><a href="https://prime.greeks.live/question/what-are-the-specific-eligibility-requirements-for-a-portfolio-margin-account-under-finra-rules/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A central metallic lens with glowing green concentric circles, flanked by curved grey shapes, embodies an institutional-grade digital asset derivatives platform. It signifies high-fidelity execution via RFQ protocols, price discovery, and algorithmic trading within market microstructure, central to a principal's operational framework](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-system-view.jpg)

## Margin Rules

A portfolio margin account requires investor sophistication, options trading approval, and sufficient capital, governed by FINRA Rule 4210(g). </a><a href="https://prime.greeks.live/area/bilateral-risk/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A central glowing blue mechanism with a precision reticle is encased by dark metallic panels. This symbolizes an institutional-grade Principal's operational framework for high-fidelity execution of digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/precision-core-enabling-institutional-digital-asset-derivatives-rfq-execution.jpg)

## Bilateral Risk

Meaning ▴ Bilateral risk signifies direct exposure between two transaction parties due to potential default, inherent in over-the-counter markets without central clearing. </a>

**Tags:** [Bilateral Risk](https://options.greeks.live/area/bilateral-risk/), [Risk Management](https://options.greeks.live/area/risk-management/), [Collateral Management](https://options.greeks.live/area/collateral-management/), [Counterparty Credit Risk](https://options.greeks.live/area/counterparty-credit-risk/), [Credit Support Annex](https://options.greeks.live/area/credit-support-annex/), [Counterparty Selection](https://options.greeks.live/area/counterparty-selection/)	

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Counterparty risk management shifts from reliance on a central clearer to a granular, bilateral system of direct credit assessment.

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Central clearing re-architects market liquidity by trading counterparty risk for the systemic, procyclical demand for collateral.

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Bilateral RFQ systems create discrete counterparty risk vectors, while central clearing transforms them into a singular, mutualized exposure to a CCP.

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A firm's technology and governance frameworks mitigate counterparty risk by forming an integrated system for real-time exposure analysis and disciplined policy enforcement.

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The ISDA CSA is a legal protocol that operationalizes counterparty risk mitigation by mandating the exchange of collateral.

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A central counterparty refactors the financial network from a complex web of bilateral risks to a centralized hub, netting exposures and concentrating risk.

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### [How Does Counterparty Risk Differ between Exchange-Traded Futures and OTC Options?](https://options.greeks.live/question/how-does-counterparty-risk-differ-between-exchange-traded-futures-and-otc-options/)
![Intricate blue conduits and a central grey disc depict a Prime RFQ for digital asset derivatives. A teal module facilitates RFQ protocols and private quotation, ensuring high-fidelity execution and liquidity aggregation within an institutional framework and complex market microstructure.](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-engine-for-digital-asset-derivatives-best-execution-1.jpg)

Counterparty risk is mutualized by a central clearinghouse for futures and borne directly by the trading parties for OTC options.

- 
### [What Legal Frameworks Govern Counterparty Risk in over the Counter Derivatives Markets?](https://options.greeks.live/question/what-legal-frameworks-govern-counterparty-risk-in-over-the-counter-derivatives-markets/)
![A central teal and dark blue conduit intersects dynamic, speckled gray surfaces. This embodies institutional RFQ protocols for digital asset derivatives, ensuring high-fidelity execution across fragmented liquidity pools. It optimizes price discovery, atomic settlement, and capital efficiency.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-engine-3.jpg)

The legal frameworks governing OTC derivatives are a multi-layered system designed to quantify, collateralize, and centralize counterparty risk.

- 
### [How Does a Central Counterparty Alter the Nature of Counterparty Credit Risk?](https://options.greeks.live/question/how-does-a-central-counterparty-alter-the-nature-of-counterparty-credit-risk/)
![Angular teal and dark blue planes intersect, signifying disparate liquidity pools and market segments. A translucent central hub embodies an institutional RFQ protocol's intelligent matching engine, enabling high-fidelity execution and precise price discovery for digital asset derivatives, integral to a Prime RFQ.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-execution-hub-for-market-microstructure.jpg)

A central counterparty alters counterparty risk by replacing a web of bilateral exposures with a centralized hub-and-spoke model via novation.

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---

**Original URL:** https://options.greeks.live/question/what-are-the-key-differences-in-counterparty-selection-strategy-for-cleared-vs-uncleared-swaps/
