Contracting Innovations and the Evolution of Clearing and Settlement Methods at Futures Exchanges
48 Pages Posted: 21 Jun 2006
Date Written: 1998
Defining futures contracts as substitutes for associated cash transactions enables a discussion of the evolution of controls for contract nonperformance risk. These controls are incorporated into exchange methods for clearing contracts. Three clearing mnethods are described: direct, ringing, complete. The incidence and operation of each are described.
Suggested Citation: Suggested Citation