The global financial system might be better off in some respects if derivatives trading migrated toward more standardized transactions, according to Federal Reserve Chairman Ben Bernanke, reports Markets Media.

“Although customized derivatives contracts between sophisticated counterparties will continue to be appropriate in many situations, on the margin it appears that a migration of derivatives trading toward more-standardized instruments and the increased use of well-managed central counterparties, either linked to or independent of exchanges, could have a systemic benefit,” he said at the annual Jackson Hole conference.

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