John At The Center

Regulators are preparing rules that will require the majority of privately traded derivatives be cleared through central counterparties, which stand between trading partners and guarantee the trades.

Goldman’s clearing business will offer client clearing for interest rate, credit, foreign exchange, equity and commodity derivatives.

Derivatives are based on underlying securities such as stocks, bonds, foreign exchange or commodities or are used to bet or protect against changes in interest rates.

via Goldman Starts Derivatives Clearing Service – DealBook Blog – NYTimes.com.