This note discusses the basic economics of central clearing for derivatives and the need for a proper regulation …, supervision and resolution of central counterparty clearing houses (CCPs). New regulation in the U.S. and in Europe renders the …

of the reference entity; 2) the credit risk of the counterparty; 3) the clearing member's portfolio net exposure with the … Central Counterparty Clearing House (CCP) and 4) post trade transparency. We use confidential European trade repository data … for central clearing, while 9% of the contracts were not clearable because they did not satisfy certain CCP clearing …

clearing incentives seem particularly responsive to seller's credit risk, in line with the notion that counterparty credit risk …, we find evidence that when the transaction helps netting positions with the CCP, and hence lower margins, the likelihood …

Through the lens of market participants' objective to minimize counterparty risk, we investigate central clearing in … suggest that central clearing always reduces counterparty risk for a sufficiently large number of clearing members. We show … that this is not the case - mostly because of loss sharing. Central clearing can increase counterparty risk, particularly …

reluctance to clear derivative trades in the absence of a central clearing obligation. We develop a comprehensive understanding … moving from a bilateral to a clearing architecture for derivative markets. Previous studies suggest that central clearing is … beneficial for single market participants in the presence of a sufficiently large number of clearing members. We show that three …

reluctance to clear derivative trades in the absence of a central clearing obligation. We develop a comprehensive understanding … moving from a bilateral to a clearing architecture for derivative markets. Previous studies suggest that central clearing is … beneficial for single market participants in the presence of a sufficiently large number of clearing members. We show that three …

of the reference entity; 2) the credit risk of the counterparty; 3) the clearing member's portfolio net exposure with the … Central Counterparty Clearing House (CCP) and 4) post trade transparency. We use confidential European trade repository data … for central clearing, while 9% of the contracts were not clearable because they did not satisfy certain CCP clearing …