too-big-to-fail entities in the making. The present regulatory and reform efforts may not remove the systemic risk from … OTC derivatives but rather shift them from banks to CCPs. Under the present regulatory overhaul, the OTC derivative market …, indicates that the proposed changes may not provide the best solution. The paper suggests that a tax on derivative liabilities …

risk is measured by losses to the financial system that may result via the OTC derivative contracts from the default of one …The financial market turmoil of recent months has highlighted the importance of counterparty risk. Here, we discuss … counterparty risk that may stem from the OTC derivatives markets and attempt to assess the scope of potential cascade effects. This …

Credit derivative markets are largely unregulated, but calls are increasingly being made for changes to this ""hands … next one. The purpose of this paper is to address two basic questions: (i) do credit derivative markets increase systemic … risk; and (ii) should they be regulated more closely, and if so, how and to what extent? The paper begins with a basic …

To mitigate systemic risk, some regulators have advocated the greater use of centralized counterparties (CCPs) to clear …

cross-border currency and interest rate derivative operations in calm and turbulent periods, with a view of extracting … substitutability, and incorporate the enriched information set provided by derivative-based transactions into monetary policy design …

interest-rate derivative markets, and their use by governments. Their stabilizing properties imply that, when bond prices fall … gains from hedging long-term bonds with interest rate derivatives. These bonds can help develop interest-rate derivative …

the size of the U.K. derivative markets. No definitive empirical support for a change in the transmission process is found …

most of these operations, being off-balance sheet, increase the risk and reduce the transparency of central bank accounts …

-balance-sheet activities. This paper provides measures of leverage implicit in derivative contracts by decomposing the contracts into cash … presented. The interaction between leverage and risk is discussed, and a modified capital adequacy ratio is calculated, which …

markets to operate at their current levels. Systemic risk costs of highly connected SIFIs nodes are not priced into their …