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If governments insist in central clearing for illiquid contracts, they must accept the consequences.
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In September, Kweku Adoboli, a trader at UBS, was arrested over an alleged fraud that led to a $2 loss. Following the arrest, there was justifiable shock across the industry. But, as David Wigan discovers, the accusations of fraud exacerbate existing concerns over the growth of the once pedestrian and innocuous asset class that is exchange-traded funds.