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To: Roads End who wrote (74956)	3/2/2001 9:26:07 PM
From: pater tenebrarum	Read Replies (2) \| Respond to of 436258

well, this problem continues to bug me too. however, in the '87 meltdown, the clearing house DID honor all put contracts, even though several market makers/specialists went bankrupt and were carried out feet first. i'm therefore assuming that the same holds true if a melt-down should occur nowadays. listed options seem to me to be relatively safe in this regard. otc derivatives contracts are a different matter entirely. i expect for instance many of the gold related derivatives and gold loans to evaporate when gold finally moves. the counterparties at the wrong end of the trade will fail and declare 'force majeure'. the CBs better forget about the gold they have lent out.