Administration officials have once again put the need for new trading systems for complex derivatives on the front burner. Officials are right to be concerned, as many new financial products represent contracts between two counterparties – banks, brokerage houses, insurance companies, and hedge funds, among others – without the benefit of a centralised exchange or clearinghouse.
Why foreign exchange transactions did not freeze up during the global financial crisis: The role of the CLS Bank
Richard M. Levich, 10 July 2009
Topics: Financial markets, International finance
Tags: Clearinghouse, CLS Bank, foreign exchange, settlement bank
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