Clearing and Settlement of Derivatives

Preface

Derivatives aren’t dangerous, only the people who use them with-

out understanding their characteristics and how to clear, settle

and manage the operational risk.

The world of derivatives is sometimes viewed as a highly technical and

somewhat mystical area of the financial markets. It also has, in some

quarters anyway, a poor reputation following various high-profile

situations involving rogue dealing and large losses on transactions.

The reality is that derivatives are a product that is primarily designed

to transfer risk and without the use of derivatives in commerce,

commodities, investment and finance, ...