re: #453 pittrader1988

listed options are regulated. There should be unlimited amounts of trading here.
If a guy wants to go naked short puts or calls, they ought to be able to do it as long as they have the capital. If they don’t, the clearing house blows them out.

Right, and that’s what was missing in the swaption market, a regulated exchange that ensured the counter parties could pay, however, the Lehmans settlement demonstrated that the market was well hedged and the counter-parties settled without problem.