Can a CLOB Function Effectively for Any Type of Derivative, or Are Some Universally Unsuitable?

A CLOB can function effectively for highly standardized derivatives with high trading volumes, such as futures contracts on major indices or standard exchange-traded options. However, some derivatives are universally unsuitable for a CLOB.

These include bespoke instruments like exotic options or complex swaps tailored to a specific client's needs. Their unique, non-fungible nature means they lack the standardized terms and trading interest required to build a deep, liquid order book, making the CLOB model entirely impractical.