Galbiati, Marco; Soramäki, Kimmo - In: Journal of Economic Behavior & Organization 83 (2012) 3, pp. 609-626
In several financial markets, counterparty risk is reallocated away from traders via ‘novation’, a step of the clearing … counterparty risk. However, in most cases, the CCP is not the sole novator: the CCP novates contracts between its clearing members …