Financial Times FT.com

Derivatives cannot take the strain

By John Dizard

Published: August 20 2005 03:00 | Last updated: August 20 2005 03:00

The recent difficulties settling futures contracts in Chicago have highlighted a growing problem: there are big derivatives markets out there that aren't built to take the strain being put on them.

Last spring it was the credit default swaps; now it's the 10-year bond; and this fall there will probably be another bonus-killer lurking somewhere.

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