Explain why trading derivatives on centralized exchanges rather than in over-the-counter markets helps to reduce systemic risk.

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Money Banking and Financial Markets

ISBN: 978-0078021749

4th edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

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Question Posted: Oct 02, 2014 07:58 AM

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Explain why trading derivatives on centralized exchanges rather than in over-the-counter markets helps to reduce systemic risk.

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The presence of a centralized counterparty CCP increases transparency ...View the full answer

Money Banking and Financial Markets

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