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Re: Mkt - 1987 & the CME



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The interesting fact about about 1987, from the options side , is that
when it was all said and done, the total of unsecured losses from
failure to pay(including OEX...SPX....XMI....and all equity options)from
all sources amounted to just under $8 Million.  It was 100% concentrated
with one brokerage house in Michigan.  $8 Million when it was all over.
The other important point is that today riskbased and cross margining
exist which wasn't the case in 87.  The crossbased margining alone would
have eliminated about 70- 80% of the initial concerns in the total index
derivative market.