Why aren’t these firms insuring against this risk? Seems like any other risk that can be managed - pay premiums and so that a third party would fund any erroneous losses.
Because they don't have to? They don't suffer from the risk...
Clearing frequently act like a form of insurance for smaller firms, up to and including asking for killswitches in your trading engines and audits of your risk procedures.
But big firms clear themselves so don't have that. Theoretically the internal risk team is responsible for that but those teams are frequently undergunned.
kasey_junk|8 years ago
Clearing frequently act like a form of insurance for smaller firms, up to and including asking for killswitches in your trading engines and audits of your risk procedures.
But big firms clear themselves so don't have that. Theoretically the internal risk team is responsible for that but those teams are frequently undergunned.
parm289|8 years ago
r00fus|8 years ago