It’s bad because it can’t be settled. If Chase is to assume the clawback from a default settlement, then they are essentially non secured contracts and could ha

It’s bad because it can’t be settled. If Chase is to assume the clawback from a default settlement, then they are essentially non secured contracts and could have been traded so without the extra cost of the rocks. But in general you want the people responsible of delivery to be responsible and actually deliver even if 99% of the time the underlying is just exchanged electronically.