Clearing Over-the-Counter Derivatives
10 Pages Posted: 15 Nov 2011
Date Written: October 24, 2011
Prior to the financial crisis of 2008, the over-the-counter derivatives market was not required to “clear” transactions. This changed with the Dodd–Frank Act of 2010. This article explains how clearing works and how it could improve liquidity and competition for over-the-counter derivatives.
Keywords: financial institutions and services, government policy and regulation
JEL Classification: G20
Suggested Citation: Suggested Citation