Derivatives transactions create systemic risk by threatening to spread the consequences of default throughout the financial system. Responding to the manifestations of systemic risk exhibited in the financial crisis, policy-makers have sought to solve the problem by requiring as many derivatives transactions as possible to be "cleared" (essentially guaranteed) by a clearinghouse.
Sean J. Griffith,
Governing Systemic Risk: Towards a Governance Structure for Derivatives Clearinghouses,
Emory L. J.
Available at: https://scholarlycommons.law.emory.edu/elj/vol61/iss5/3