Financial Services—other developments (10/2/2025)
A round-up of other developments, which have not been covered in full by the LexisNexis Financial Services practical guidance team but may nevertheless be of interest.
This overview is a guide to the Financial Services content within the Regulation of exchange-traded derivatives subtopic, with links to appropriate materials.
Exchange-traded derivatives (ETDs) are derivative contracts which have been entered into through an exchange. The exchange enables the entering into of offsetting derivative contracts by market participants. It provides a forum where a relatively limited range of futures and options can be traded on standard terms.
Trading derivative contracts on the exchange requires those contracts to have highly standardised terms and conditions to ensure that they can be matched on the exchange. Unlike over-the-counter (OTC) derivative contracts which can have bespoke terms, ETDs are generally inflexible as to the choice of underlying assets, maturity, size of contract, terms of delivery and other terms. The standardised nature of ETDs helps to ensure their liquidity and price competitiveness.
All ETD contracts are cleared through a central counterparty (CCP), also known as a clearing house.
When an ETD is entered into, each of the counterparties is exposed to the risk that the other counterparty will fail to meet its obligations under the ETD (counterparty
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