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Central Clearing and Collateral Demand
Duffie, Darrell - 2014
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 …
Persistent link: https://www.econbiz.de/10012458774
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Valuing the Futures Market Clearinghouse's Default Exposure During the 1987 Crash
Bates, David - 1998
Futures market clearinghouses are intermediaries that make large volume trading between anonymous parties feasible. During the October 1987 market crash rumors spread that a major clearinghouse might fail. This paper presents estimates of three measures of the default exposure on the popular...
Persistent link: https://www.econbiz.de/10012472298
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Credit Default Swaps and the Credit Crisis
Stulz, René M. - 2009
Many observers have argued that credit default swaps contributed significantly to the credit crisis. Of particular concern to these observers are that credit default swaps trade in the largely unregulated over-the-counter market as bilateral contracts involving counterparty risk and that they...
Persistent link: https://www.econbiz.de/10012463266
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Entry and Exit in OTC Derivatives Markets
Atkeson, Andrew G. - 2014
We develop a parsimonious model to study the equilibrium and socially optimal decisions of banks to enter, trade in, and possibly exit, an OTC market. Although we endow all banks with the same trading technology, banks' optimal entry and trading decisions endogenously lead to a realistic market...
Persistent link: https://www.econbiz.de/10012458250
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The Market for OTC Derivatives
Atkeson, Andrew G. - 2013
We develop a model of equilibrium entry, trade, and price formation in over-the- counter (OTC) markets. Banks trade derivatives to share an aggregate risk subject to two trading frictions: they must pay a fixed entry cost, and they must limit the size of the positions taken by their traders...
Persistent link: https://www.econbiz.de/10012459749
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The Twilight Zone : OTC Regulatory Regimes and Market Quality
Brüggemann, Ulf - 2013
We analyze a comprehensive sample of more than 10,000 U.S. OTC stocks. We provide much needed descriptive evidence on this market and show that the OTC market is a large, diverse, and dynamic trading environment with a rich set of regulatory and disclosure regimes, comprising venue rules and...
Persistent link: https://www.econbiz.de/10012459304
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Bail-ins and Bail-outs : Incentives, Connectivity, and Systemic Stability
Bernard, Benjamin - 2017
This paper develops a framework to analyze the consequences of alternative designs for interbank networks, in which a failure of one bank may lead to others. Earlier work had suggested that, provided shocks were not too large (or too correlated), denser networks were preferred to more sparsely...
Persistent link: https://www.econbiz.de/10012453964
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Why the European Securities Market is Not Fully Integrated
Giovannini, Alberto - 2008
I describe the challenge of fully integrating securities markets in Europe by integrating the clearing and settlement …
Persistent link: https://www.econbiz.de/10012464171
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Regulatory Structure in Futures Markets : Jurisdictional Competition Among the SEC, the CFTC, and Other Agencies
Kane, Edward J. - 1984
This paper studies competition among alternative regulatory bodies for authority over innovative financial contracts. In the United States, this rivalry embraces not only the Commodity Futures Trading Commission and the Securities and Exchange Commission, but state and federal...
Persistent link: https://www.econbiz.de/10012477763
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Danger on the Exchange : How Counterparty Risk Was Managed on the Paris Bourse in the Nineteenth Century
Riva, Angelo - 2010
Over the course of the nineteenth century, the struggles of Paris Bourse to manage counterparty risk revealed the awkward choices that face derivatives exchanges. Shortly after it was founded, the stock exchange, primarily a forward market, instituted a mutual guarantee fund to prevent broker...
Persistent link: https://www.econbiz.de/10012463016