This would also be consistent with a considerable number of reports by businesses that they are realizing new efficiencies in production, both through corporate reorganization and through the application of new technology. What was the rationale for the March 25 tightening? The discussion of the rationale for the March 25 policy move to follow is my personal view.
For instance, a mere 13 % of credit derivatives are cleared through CCPs. The majority are subject to bilateral clearing agreements between the counterparties. Thus, the OTC derivative contracts that are traded around the world have led to a network in which a very small number of globally active banks play a major role.