Emory Law Journal

Volume 61Issue 5

Governing Systemic Risk: Towards a Governance Structure for Derivatives Clearinghouses

Sean J. Griffith | 61 Emory L.J. 1153 (2012)

Derivatives transactions create systemic risk by threatening to spread the consequences of default throughout the financial system. Responding to the manifestations of systemic risk exhibited in the financial crisis, policy-makers have sought to solve the problem by requiring as many derivatives transactions as possible to be "cleared" (essentially guaranteed) by a clearinghouse.

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