Competition suits customers, but it also carries the risk that clearing-houses will water down standards on the amount of margin they demand, for instance to win deals.
They have also coaxed leading international banks into setting up a global clearing house to reduce the risk of loss should big foreign-exchange trades not be completed as the parties agreed.
Demand for clearing transactions are expected to increase over the next few years as regulators force banks and other parties to channel trades through regulated clearing houses to ensure their risk positions can be better monitored.
Strong risk controls combined with centralized clearing further align with the objectives of the Dodd-Frank Act to boost transparency and reduce systemic risk.
That feeds worries about the other effect of lots more clearing: a new concentration of risk.
Regulators and major brokerage houses have been pushing for a centralized clearing solution to eliminate counterparty credit risk in order to free up capital for lending.
So what we try to do is find a way to maintain the high levels of risk management of a clearing house, but also provide capital efficiency to the people who are participating in the clearing house arrangement.
You learn tricks like putting a little water at the bottom of a votive holder to pop the candles out at the end of the evening, or pouring out all the liquid when clearing champagne flutes so you can lay them on their side on the clearing tray (drastically reducing the risk of breaking them as they all topple over).
Lord Bradshaw, for the Liberal Democrats, condemned the "nonsense" that householders could risk being sued for inadequately clearing their pathway of snow.
The new rules aims to reduce risk when trades go through clearing houses by standing between and guaranteeing both sides of each trade.
Colombia's vigorous police chief, General Rosso Jose Serrano, argues that the damage caused by farmers clearing land for coca far exceeds any risk from tebuthiuron.
Firms and clearing houses need to look at their complete counterparty risk, and the only way to do that is in real-time.
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The Environment Agency said uplands and areas that experienced heavy rain earlier this week were more at risk and it had teams checking flood defences, clearing river blockages and monitoring river levels.
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There is still further to go in the structural reorganization of the danger from derivatives, but he believes clearing derivatives contracts on exchanges and the decline in bilateral transactions has reduced an element of risk.
The important benefit of exchange clearing is a clearing house acts as the central counterparty to both sides of a CDS transaction, thereby reducing risk on both sides of the transaction.
He won his first Pulitzer Prize at the age of 28 for a series of articles in the Washington Daily News that were judged responsible for clearing a civilian employee of the U.S. Navy from McCarthy-era allegations that he was a security risk.
If these products that got to be so large can have that much impact on systemic risk in the U.S. financial system, I think the dealers have to accept that central clearing and some transparency is a price of wanting to be in those businesses.
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