We all know that monumental cock-ups are not the sole preserve of OTC markets. Just think of Nick Leeson or the Sumitomo copper scandal. In a timely article about some misplaced conceptions, consultant Larry Tabb warns: “Just because [the US] Congress mandates that OTC products trade on-exchange doesn’t mean that OTC derivatives won’t blow up.”
Writing for the FinanceTech website, Tabb writes: “Somewhere the ideas of ‘exchange-traded’ and ‘risk-free’ have become linked in the eyes of the public.
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