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Ok: enough of the cod-philosophical sci-fi. The notional amount of [[OTC]] [[derivatives]] traded in 1995<ref>According to BIS Triennial Review, since you are asking. {{google3|BIS|Triennial|Review}}.</ref>, when I took my red pill, was roughly USD12 trillion. By 2018 it was nudging USD600 trillion<ref>According to [https://www.isda.org/a/9atME/Key-Trends-in-Size-and-Composition-of-OTC-Derivatives-Markets.pdf ISDA].</ref>. ''Six hundred trillion bucks''.<ref>I know, I know: that is gross notional and not net outstanding exposure. But still.</ref> | Ok: enough of the cod-philosophical sci-fi. The notional amount of [[OTC]] [[derivatives]] traded in 1995<ref>According to BIS Triennial Review, since you are asking. {{google3|BIS|Triennial|Review}}.</ref>, when I took my red pill, was roughly USD12 trillion. By 2018 it was nudging USD600 trillion<ref>According to [https://www.isda.org/a/9atME/Key-Trends-in-Size-and-Composition-of-OTC-Derivatives-Markets.pdf ISDA].</ref>. ''Six hundred trillion bucks''.<ref>I know, I know: that is gross notional and not net outstanding exposure. But still.</ref> | ||
but in any case, an {{isdama}} was once a rare and special beast. Nowadays it isn't — large institutions negotiate thousands of them every year — so [[management consultant]]s the world over are poring over the ''{{wasteprov|cost}}s'' of [[negotiation]] to see how to bring them down. This means some kind of triage. | but in any case, an {{isdama}} was once a rare and special beast. Nowadays it isn't — large institutions negotiate thousands of them every year — so [[management consultant]]s the world over are poring over the ''{{wasteprov|cost}}s'' of [[negotiation]] to see how to bring them down. This means some kind of triage. The [[partner]] flipped it to the [[associate]], to the [[trainee]], to the [[inhouse lawyer]], to the [[ISDA negotiator]], to the operations clerk. | ||
{{sa}} | |||
*[[Close-out Netting]]: the [[Red Flag Act]] of finance. | |||
* | |||
{{ref}} | {{ref}} | ||