Do Over-the-Counter (OTC) Derivatives Typically Use a Central Clearing House? ▴ Learn

Do Over-the-Counter (OTC) Derivatives Typically Use a Central Clearing House?

Historically, OTC derivatives were primarily bilateral contracts traded directly between two parties and did not use a central clearing house. However, following the 2008 financial crisis, regulatory reforms have mandated or incentivized the central clearing of many standardized OTC derivatives, particularly interest rate and credit default swaps, to reduce systemic risk.

While many non-standardized or customized OTC products still trade bilaterally, the trend is toward central clearing where possible.

Why Are OTC Derivatives Increasingly Being Mandated for Clearing through a CCP?

Historically, How Has the Bitcoin Price Reacted to Previous Halving Events?

How Did the Dodd-Frank Act in the US Address the Need for Central Clearing?

How Have Previous Halving Events Historically Correlated with Bitcoin’s Price?