skip to navigation skip to content

Waters: The center ground


On July 4 2012, the Council of the European Union adopted a regulation that will see standardized derivatives contracts in Europe cleared through central counterparties… “The regulation requires that counterpartly trading risks in the OTC derivatives market be transferred to clearinghouses. It remains to be seen, however, whether the concentration of these risks with clearinghouses will lead to different types of systemic risks that put the financial system at serious risk,” says Professor Kern Alexander, Cambridge Judge Business School…