Nemlioğlu, Ali Karun; Monnet, Cyril - Schweizerische Nationalbank (SNB) - 2014
In this working paper, we study the three generic clearing arrangements in the presence of two-sided limited commitment …: simple bilateral clearing, segregated collateral clearing through a third party, and - most sophisticated of all - central … counterparty (CCP) clearing. Clearing secures the settlement of obligations from over-the-counter (OTC) forward contracts that …