“I don’t think clearing eliminates risk, but instead is a socialization of risk and thus we do feel quite strongly about having a strict membership requirements in order to make sure that when there is something wrong you can settle it in an orderly efficient manner.”
“I don’t think clearing eliminates risk, but instead is a socialization of risk and thus we do feel quite strongly about having a strict membership requirements in order to make sure that when there is something wrong you can settle it in an orderly efficient manner.”
—Thomas Treadwell, Asia Pacific head of over-the-counter client clearing for Citigroup in Singapore, on the need to have strict clearinghouse membership requirements.