Clearly, the brutal financial damage that swept the financial community due to unregulated, little-understood derivative contracts like credit default swaps is one of the most controversial issues of the financial meltdown.

FORBES: Commentary

In the domain of derivative contracts like credit default swaps or auction-rate preferreds (which even George Soros didn't know existed) or complex collateralized debt obligations of mortgage-backed bonds, there was a "failure to know what isn't known, " and the ramifications for not knowing were huge.

FORBES: It Was 79 Years Ago Today

The venture between the two Chicago firms is meant to launch within 30 days and would provide a fully integrated trading and clearing platform for credit default swaps, the complex derivative contracts that have been one of the flash points of the credit crisis.

FORBES: Magazine Article

Schlosstein picked out the growth of credit-default swaps, a type of derivative often used purely for speculative purposes.

NEWYORKER: What Good Is Wall Street?

Credit default swaps (CDSs) are one type of derivative contract, and regulators in the US and EU put them on a faster track to exchange clearing.

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