Purpose – The purpose of this paper is to examine the extent of systemic risk and competition in over-the-counter (OTC) derivatives dealing. Using derivatives-related failures during the 1990s, the authors draw conclusions that are pertinent to the recent financial market turmoil involving OTC...

Purpose – The purpose of this paper is to examine the extent of systemic risk and competition in over‐the‐counter (OTC) derivatives dealing. Using derivatives‐related failures during the 1990s, the authors draw conclusions that are pertinent to the recent financial market turmoil...