Recent regulation mandating the clearing of credit default swaps (CDS) by a Central Clearing Counterparties (CCP), has …

Following the 2008 financial crisis, regulation mandates the clearing of the CDS market through Central Clearing …

Recently, for standard asset classes, the first mutual clearing agreements between Central Coun- terparties (CCPs) have … agreement framework to credit default swaps (derivatives) CCPs and compares this to clearing without any such agreement. Key …

We examine the effects on a financial network of multilateral clearing via a central clearing counterparty (CCP) from … simulation study based on aggregate market data shows that central counterparty clearing can reduce systemic risk and improve …

collateral to support arbitrage trades. We show that with volatile asset demands, arbitrage becomes risky. With information … frictions, a looser collateral policy might render the economy more vulnerable to extremely large demand shocks, while a tighter … collateral constraint helps maintain the stability at the cost of market liquidity supply …

We examine the effects on a financial network of clearing all contracts though a central node (CN) thereby transforming …

banks. In a financial downturn, as the value of collateral decreases, the merchant bank must sell assets on short notice …