1. Margin calls,
2. clearing houses ensure no counter party risk.
3. Contract standardization and risk exposure netting.
So a clearing house faces both the buyer and seller and guarantees contract performance of both parties.
Since no coins are delivered e.g. cash settled, the will not affect the fair market price directly.
4. You will hate this, but facts are facts… at a clearing house that is deemed systemically important by the cftc RISK is socialized.
No. 4 explains it. Gotcha.
Still, is there a law that prevents a company from compensating their friends and running out of funds for the rest of us?
Yes, selectively enforced. And yes our treasury, FED, SEC, CFTC, OFAC; all get away with illegal activities depending on the administrations agenda.
Also remember all those orgs are CIVIL only criminal is referred to the FBI and DOJ, and they have their own political stomach/agenda.
BUT ANY ONE OF THESE COULD CHOOSE TO MAKE AN EXAMPLE OUT OF YOU.
