Rating is available when the video has been rented.
This feature is not available right now. Please try again later.
Uploaded on Jul 30, 2010
The key advantage of a central counterparty (CCP) is multi-lateral netting. The two key disadvantages of a CCP are (i) some degree of product standardization is required (because collateralization—daily variation margin—requires a common valuation methodology) and (ii) systemic risk is not eliminated because the CCP itself is not the entity that is "too interconnected to fail."
...additional resources can be found on our website.