As regulations make over-the-counter swaps more costly forcorporate end users, exchanges are coming out with exchange-tradedswap futures contracts to provide an alternative. But the futurescontracts may never match the flexibility that OTC swapsprovide.

CME Group is launching deliverable interest-rate swap futures Nov. 13 that willprovide exposure to a cleared interest-rate swap, along with thepricing transparency, cross-margining and margin savings of astandard futures contract. The IntercontinentalExchange shifted allof its cleared energy swaps to futures last week, and it plans tolaunch a credit-default swap futures contract early next year.

So far, such products, especially those that hedge interest-raterisk, don't hold much appeal for nonfinancial companies.