Derivatives: OTC or Exchange-Traded -- Good, Bad or Indifferent?
By Larry Tabb
Published: April 4 2011 Advanced Trading
Swaps have traditionally traded over the counter between consenting adults. The market had little oversight; it was managed by large dealers, cleared bilaterally and had little transparency. Then came the credit crisis. OTC derivatives -- namely swaps -- were blamed for everything bad in the world.
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