Monday, October 13, 2008

Exchanges, Settlement Systems Functioned Amazingly

We should take a minute to appreciate just how far market structure has come.

All of the exchanges and settlement systems have coped with volatility and price "crashes", without any reported disasters.

Even ISDA handled its credit-event, default, price-fixing auction, ever. It was a little messy, but it wasn't an unmitigated disaster or anything.

Long time ago, the market used to have to "close" in order for the back office to catch up.

Look around the world, things are pretty good, too. Only a few markets had to shut down.

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