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 …-specialized types, and client clearing. Among other results, we show that system-wide collateral demand is increased significantly by …

unsecured lending and substantial increases in haircuts on posted collateral. This paper seeks to understand the implications of …

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 …