Clearing of Derivatives
In the wake of the financial crisis of 2007-2010 and as part of the Obama financial regulatory reform plan of 2009, pressure has been placed on traders of derivatives such as credit default swaps to make their trades on an open exchange with a clearinghouse. In June 2009, Federal Reserve official Alfred Kohn mentioned that the largest credit default swap dealers were working on an exchange, and that only regulatory approval rather than legislation would be required. In March 2010, the Options Clearing Corporation stated that it was moving forward in backing equity derivatives.
Read more about this topic: Clearing House (finance)
Famous quotes containing the word clearing:
“Usually the scenery about them is drear and savage enough; and the logger’s camp is as completely in the woods as a fungus at the foot of a pine in a swamp; no outlook but to the sky overhead; no more clearing than is made by cutting down the trees of which it is built, and those which are necessary for fuel.”
—Henry David Thoreau (1817–1862)