NBS on Nostr: nprofile1q…9j624 Yes, more so than pure OTC. FLEX still clear through an exchange ...
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Yes, more so than pure OTC. FLEX still clear through an exchange which matches details agreed by both buyer and seller and ensure the non-market maker can post necessary collateral/margin, but that’s about the extent of their involvement. You also have specific legal agreements with your counterparties which map out all of the associated risks.
OTC has no exchange involvement whatsoever, so said agreements are much more thorough and the collateral/margin much more robust.
Yes, more so than pure OTC. FLEX still clear through an exchange which matches details agreed by both buyer and seller and ensure the non-market maker can post necessary collateral/margin, but that’s about the extent of their involvement. You also have specific legal agreements with your counterparties which map out all of the associated risks.
OTC has no exchange involvement whatsoever, so said agreements are much more thorough and the collateral/margin much more robust.