Well, it can happen if the clearing corporation fails to manage risks, but it hasn't happened in the history of our capital markets (To the best of my knowledge). However, your concerns are legitimate, and I'll try to shed... (More)

Without a clearing corporation, markets will not have the confidence to transact in large volumes. A CC is there to ensure that trades are settled as per the commitments and they also guarantee the settlement of trades on the exchange.... (More)