The Importance of Clearing Houses in Over-the-Counter Trades

The clearing house supports what we call efficient price discovery by putting everybody on the same level. It was clear there was a commercial need for it, and it was solving a problem in terms of where we might enter the market. We wanted to open the clearing house to the OTC market and resolve some of the issues that the market was facing. And much like in the industry market, if the US treasury market is the risk free rate for interest then you can have faith that what you're buying or selling is at a fair price.