are consistent with the reluctance to clear derivative trades in the absence of a clearing obligation. …

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 … its counterparties: 1) correlation across and within derivative classes (i.e., systematic risk), 2) collateralization of …

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 … its counterparties: 1) correlation across and within derivative classes (i.e., systematic risk), 2) collateralization of …

How does bank capital regulation affect the design of credit derivative contracts? How does the opacity of the OTC … credit derivative markets affect these contracts? In this paper we address these issues and characterize the optimal security … derivative markets do affect the form of the optimal separating contract and the level of the banks' profits. Moreover, our …

incentives to voluntarily centrally clear Over-The-Counter (OTC) derivative contracts. We use confidential European trade … repository data on singlename sovereign Credit Derivative Swap (CDS) transactions and show that both the seller and the buyer …