Explain why trading derivatives on centralized exchanges rather than in over-the counter markets helps reduce systemic risk.
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Explain why trading derivatives on centralized exchanges rather than in over-the counter markets helps reduce systemic risk. Can you think of a way in which more trading on centralized exchanges might increase risk?
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Trading derivatives on centralized exchanges instead of overthecounter OTC markets can help reduce systemic risk due to several factors Standardization and Transparency Centralized exchanges typically ...View the full answer
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Related Book For
Money Banking And Financial Markets
ISBN: 9781260226782
6th Edition
Authors: Stephen Cecchetti, Kermit Schoenholtz
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