Bob, I may be wrong but I believe the "paper deals & contracts"...

Bob, I may be wrong but I believe the "paper deals & contracts" were simply "in theory" created to make settlements especially between Brokers & Banks more streamlined and possibly quicker. Much in the same way as most Securities are now Registered. Many moons ago I was a very aggressive trader (prior, to T + 3 and then T + 2). I used to settle my account only on a Monthly basis or when my Broker called requesting some loot. The rules were then very varied from Broker to Broker. Paper contracts only allow IMO greater manipulation and can hide the real open & short positions. IMO just another tool that the Crooks are currently using.