Risk Pearls of Wisdom

8.7 You mean we have to collaborate with our competitors?


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Clusters are found in abundance in London.  So how can competitors operate within a cluster were written (or unwritten) rules require everyone to collaborate?  In the financial markets, derivative exchanges manage the risk of their participants as a collective.  The risk profile is quite similar.  One bad apple is manageable, but two or more can be catastrophic.  People change their mind and make broad brush decisions that can destroy a cluster.

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Risk Pearls of WisdomBy Risk Pearls of Wisdom