--Eleni Himaras
The move to central clearing could spark the long tail risk hedging market. A number of pension funds and endowments have become increasingly interested in hedging against extreme market moves, but are hesitant to do so in the over-the-counter space.
Long tail risk refers to the tips of the bell curve, which are more than two standard deviations from the mean, describing scenarios with extremely low probabilities.
Tom Lee, a senior portfolio manager and principal at The ....