He therefore supported their use during deflationary episodes such as the Great Depression or Japan in the 1990s.13 The fact that deploying asset purchases was fully in line with our mandate was confirmed by the European Court of Justice.
Although credit derivatives and other derivatives have facilitated the dispersion of risk, the mechanisms for carrying out this function are highly dependent on a small number of institutions that are critical to the functioning of the markets. These institutions are the principal dealers in the OTC derivatives markets and often also among the leading clearing firms for exchange-traded derivatives.