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Only through standardization of contract terms and the underlying assurance of performance by buyers and sellers is a futures exchange able to perform its functions.
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The first response to the multitude of practically identical transactions was the standardization of contracts.
As part of a response to the global economic crisis, the European Union will also study shifting more trades to exchanges and consider the creation of a data warehouse to heighten the transparency of trades and to promote the standardization of contracts, the European Commission said.
Tomasz Piskorski, an assistant professor of finance and economics at the Columbia Business School, said, "It's a good idea to bring some light to this market, to impose some rules, some transparency and some standardization of the contracts and increase the likelihood that these contracts will be honored".
This is due to the customization afforded to banks by forward contracts traded over-the-counter, versus the standardization of futures contracts which are traded on an exchange.
The chapter highlights market conventions including the standardization of CDS contracts as a result of the 2009 CDS "Big Bang" as well as real-world complications related to recovery value clauses, credit event triggers, and settlement.
It all looked wonderful but remarkably standardized, which explained the standardization of what the average Paris greengrocer sells.
Risk of contract violation 40.
"Junior is out of contract.
The business of contract work.
The resulting standardization enables contract partners (health care providers and health insurers) to move away from discussions about the validity of indicators and instruments towards discussions about the quality of care.
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