TORONTO, Oct 1 (Reuters) - Canada will allow its market players to use either a global or local central counterparty (CCPs) to clear standardized over-the-counter derivatives, its central bank said on Monday.
Central counterparties guarantee against default should one party in a contract, trade or investment be unable to pay. The Bank of Canada has been studying for more than a year whether to have traders use a domestic CCP or work with an offshore player.
(Reporting by Jeffrey Hodgson; Editing by James Dalgleish)
Keywords: CANADA ECONOMY/DERIVATIVES