If a clearinghouse (CME or CBOT) ever becomes too big to fail, the government will step in to bail it out, which is moral hazard; but the alternative—building OTC relationships with investment banks—proved in 2008 to be worse, because banks refused to pay and you have no legal recourse to get your capital back
causalpending
Speaker
Corey HoffsteinEvidence Quote
“if the cme or sibo gets like too big to fail i think obviously the government steps in which is unfortunate moral hazard [31:03]”
Created: 8/11/2026, 1:31:56 AM
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