Things We Did Not Consider

In this step, we did not consider any of the collateral supporting functions (see Figure 5.7.5). Moreover, we described the activities for a relatively simple instrument trading and settling in an ordered process. The details for other instruments would be much more complex and challenging.

Figure 5.7.5 We did not consider any supporting functions or the complications that can arise from instruments that do not trade in an environment with a central counterparty.