What Regulatory Safeguards Exist to Prevent Counterparty Risk in Traditional Options Markets?

Traditional options markets employ rigorous regulatory safeguards. These include the use of regulated clearing corporations (CCPs) that are highly capitalized and strictly overseen.

They mandate robust margining and collateral requirements, and maintain large guarantee funds to cover potential defaults. Strict financial reporting and capital requirements for clearing members further ensure stability, which is often less stringent in the unregulated crypto space.