CHICAGO -- A futures-style clearing house for the interbank swaps market would reduce risk in the financial system, according to Merton Miller, a Nobel Prize-winning economist.

Mr. Miller, a professor at the University of Chicago business school, said that a daily settlement system and related clearing procedures would reduce "systemic risk in the interbank markets . . . somewhat."

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.