BSC Bailout: Fed Prevented a Domino Effect [View article]
Lets look at the future. As a result of all this turmoil we will see: a. all derivative contracts will be moved to and traded on public exchanges b. margin will be required for sellers of contracts d. all derivative contracts will be settled in cash As it now stands counterparty risk is unacceptable. Big players do not have to post margin, other lesser players may have margin waived. Delivery of securities as required in a default event is cumbersome if not impossible.
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Lets look at the future. As a result of all this turmoil we will see:
Apr 14 10:55 am
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All Comments by helplessobserver »BSC Bailout: Fed Prevented a Domino Effect [View article]
a. all derivative contracts will be moved to and traded on public exchanges
b. margin will be required for sellers of contracts
d. all derivative contracts will be settled in cash
As it now stands counterparty risk is unacceptable. Big players do not have to post margin, other lesser players may have margin waived. Delivery of securities as required in a default event is cumbersome if not impossible.