Goldman Gauges OTC Clearing Impact

28 Oct 2009

Researchers at Goldman Sachs have offered an estimate of risk reduction from clearing over-the-counter derivatives. Specifically, they calculate that introducing clearing for dealer-to-dealer trades will yield 16 times the counterparty risk reduction than would be achieved for trades between non-dealers.

--Katy Burne

Researchers at Goldman Sachs have offered an estimate of risk reduction from clearing over-the-counter derivatives. Specifically, they calculate that introducing clearing for dealer-to-dealer trades will yield 16 times the counterparty risk reduction than would be achieved for trades between non-dealers.

None of the authors were available for comment. ...

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