All articles tagged with #clearing risk
The US options market is experiencing record volumes, but concerns are rising over its reliance on a small group of banks to guarantee trades, which poses a concentration risk that could lead to significant losses if one of these banks fails, especially as market activity continues to grow rapidly.
The US options market is experiencing record volumes with a small group of banks, including Bank of America, Goldman Sachs, and ABN Amro, dominating clearing activities and contributing nearly half of the OCC's default fund, raising concerns about concentration risk and the need for increased competition and regulatory adjustments to mitigate potential systemic failures.