demand of new margin and clearing practices and regulations. We decompose collateral demand for both customers and dealers … impact on collateral demand of more widespread initial margin requirements, increased novation of CDS to central clearing … parties (CCPs), an increase in the number of clearing members, the proliferation of CCPs of both specialized and non …

clearinghouse that acts as a seller to every buyer and a buyer to every seller. Proponents of central clearing argue that this … benefits of central clearing are manifest, the downsides are less obvious; clearinghouses concentrate risk and pose enormous … access to central bank credit is crucial, particularly when central clearing of volatile CDSs is required …

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

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

This paper examines the impact of central clearing on the credit default swaps (CDS) market using a sample of … voluntarily cleared single-name contracts. Consistent with central clearing reducing counterparty risk, CDS spreads increase … around the commencement of central clearing and are lower than settlement spreads published by the central clearinghouse …

We study the effect of central clearing on netting efficiency in the CDS market. We examine the development of position … data and netting efficiency using aggregate data from the Depository Trust and Clearing Corporation (DTCC). Our main … a marginally significant level. Hence, central clearing decreases netting efficiency to a considerable extent …

risk, my results indicate that CDS spreads widen with the initiation of central clearing. I document that even though … dealer risk is priced in CDS spreads and an increase in dealer risk narrows spreads, the initiation of central clearing does … provide evidence that CDS volatility and central clearing widen CDS spreads jointly. Because the margin requirements of CCPs …

eligible for central clearing, globally systemically important institutions become more likely to use single name CDS contracts …