A new report from the Office of Financial Research of the US Department of Treasury reviews and compares the costs to banks of bilateral uncleared derivatives with centrally cleared derivatives, and concludes that bilateral will be less expensive in most cases.  The advantage of bilateral derivatives is far greater in the context of corporate end-users who qualify the the End User Clearing Exception under Dodd Frank, and thereby avoid mandatory margin requirements.  While its interesting to see this research coming out of a quasi-governmental entity, their conclusion isn't surprising.