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Energy Investing
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Romm - Thank you for sharing the mechanics of oil settlement, BUTHow do these ~$1.5 trillion in commodity derivatives get settled? They include options, forwards and swaps. I don't think they get settled on the oil exchange, or do they? I think these derivatives are off-exchange so no settlement is required on the oil exchange forcing closure of the derivative. They are usually between financial entities. Am I wrong? |
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