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To: LLCF who wrote (26132)	10/9/2000 10:18:55 PM
From: pater tenebrarum	Read Replies (1) \| Respond to of 436258

i any event the default of an exchange listed options contract is not an option so to speak...albeit the possibility exists that individual parties (naked shorts) to the listed contracts may get into trouble... no market dislocation has yet resulted in problems(aside from vanishing trading liquidity ), no matter how big the move. unfortunately there is little true insight into the degree of systemic risk available. one can only infer from the sheer size of the notional amounts of outstanding derivative contracts that it may be substantial.

To: LLCF who wrote (26132)	10/23/2000 10:54:11 PM
From: Citidude	Respond to of 436258

Heinz *" . . . in which all the clearing houses are members."* Actually it's mainly broker/dealers who are the members, about 125 right now. Although the OCC is the largest clearing house on the planet for derivatives, not all other clearing houses are members. Some still remain private. Smaller firms who cannot meet the strict criteria of the OCC's requirements (e.g. Clearing Fund, Margin Fund, misc. but substantial fees, etc) will clear through the bigger firms who are members.