Systemic Risk

This Issue in United States

Concept of Systemic Risk in Futures Trading

In this context of financial law, the following is a definition of Systemic Risk: The risk that a default by one market participant will have repercussions on other participants due to the interlocking nature of financial markets. For example, Customer A’s default in X market may affect Intermediary B’s ability to fulfill its obligations in Markets X, Y, and Z.