As clearing rules began to apply to hundreds of firms Monday, volume for credit default swaps indexes dropped more than 40%, while U.S. dollar interest-swap swaps volume fell more than 20%. Tuesday saw a rebound, and traders traced the plunge to concern that the clearing system wouldn't be up to the job. "It's possible that people decided to sit on the sidelines to avoid getting caught in a jam," said a source at a futures commission merchant.

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