Clearing and Settlement During the Crash

  title={Clearing and Settlement During the Crash},
  author={Ben Bernanke},
  journal={Review of Financial Studies},
  • B. Bernanke
  • Published 1990
  • Economics
  • Review of Financial Studies
This article is a reexamination of the clearing and settlement process in financial markets (particularly the futures market) and its performance during the 1987 stock market crash. It provides both some institutional background and some conceptual perspective on the problems faced by the system during the week of October 19. Much of the discussion is based on the useful analogies that can be drawn between the clearinghouse and other financial intermediaries, such as banks and insurance… 

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