the squealing by players losing heavily in the derivatives markets led some regulators and politicians to worry aloud about the potential fragility of the whole financial system. While trading in standardized options and futures is centrally cleared and guaranteed by well-capitalized clearing corporations, individually designed derivatives are simply bilateral transactions between buyer and seller. These customized derivatives are the ones responsible for the large losses suffered by many market participants during the 1990s and during the financial crisis of 2007–08.
