Costs of derivatives “exaggerated” and benefits “downplayed”, say Fed officials

“Close examination... suggests the potential costs of derivatives are often exaggerated and their benefits downplayed,” said Jeffery Gunther a research officer, and Thomas Siems, a senior economist and policy adviser, both working in the financial industry studies department of the Federal Reserve Bank of Dallas.

“Recent data provides evidence that despite talk of a breakdown, the banking system has been remarkably resilient,” the pair said in a paper ‘Debunking Derivatives Delirium’. “Contrary

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Stemming the tide of rising FX settlement risk

As the trading of emerging markets currencies gathers pace and broader uncertainty sweeps across financial markets, CLS is exploring alternative services designed to mitigate settlement risk for the FX market

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