major source of cross-country heterogeneity in the eurozone. We develop a two-country model with incomplete international …

We study the optimal design of clearing systems. We analyze how counterparty risk should be allocated, whether traders … centralized clearing, as opposed to no or decentralized clearing, is the mutualization of risk. While mutualization fully insures … protection buyers exert effort to find robust counterparties, whose low default risk makes it possible for the clearing system to …

demand of new margin and clearing practices and regulations. We decompose collateral demand for both customers and dealers … impact on collateral demand of more widespread initial margin requirements, increased novation of CDS to central clearing … parties (CCPs), an increase in the number of clearing members, the proliferation of CCPs of both specialized and non …