06.12.2012 - Regulators wrestle with swaps reform risk
Environmentalists worry nuclear power plants pose risks that are not fully understood – or controllable. The capital market equivalents could become institutions processing hundreds of trillions of dollars of trades in complex financial products. Clearing houses – or central counterparties (CCPs) – have long played a crucial role in making markets work by standing between buyers and sellers and guaranteeing deals if one party defaults. Regulators’ demands, however, mean that CCPs are taking on a vastly expanded, some believe dangerous, workload clearing much of the $640tn off-exchange market in financial derivatives that was at the heart of the global banking crisis...............................................Full Article: Source
Print