Wrong Answer to the Right Question (guests: Russell Clark, Cem Karsan)
The Market Huddle
00:00
The Problems With Clearing Houses
Before lemons, clearing houses were sort of like bit players in the financial markets. So when banks were disguised as a trade or not people not knowing what they were doing,. They use the clearing houses as sort of like a hidden trade partner. The way they price initial margin, variation margin is backward looking and they're looking to always maximize volume.
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