borrowing demands, thus increasing the borrowing cost for the asset (i.e., repo specialness). Dealers pass on the higher …' demand and securities lenders' sensitivity to repo specialness …

assets to meet initial margin requirements, but that some of them may need to increase their cash holdings to meet variation … margin calls. We also find that default funds worth only a small fraction of dealers' equity appear sufficient to protect … margin requirements take into account the tail risks and time variation in risk of cleared portfolios. Finally, we find that …

already have sufficient unencumbered assets to meet initial margin requirements, but that a few may need to increase their … cash holdings to meet variation margin calls in a timely way. We also find that the potential costs of individual or … long as CCPs factor into initial margin requirements the extent of tail risk and time variation in risk of different types …