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 …

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 …

In recent years, we have observed the dramatic increase of the use of collateral as an important credit risk mitigation … tool. It has become even rare to make a contract without collateral agreement among the major financial institutions. In … shown the importance of the ”choice” of collateral currency. Especially, when the contract allows multiple currencies as …

stablecoin. DAI works through a set of autonomous smart contracts, in which users deposit cryptocurrency collateral, typically …, we show that DAI price covaries negatively with returns to risky collateral. The peg-price volatility is related to … collateral risk, while the stability rate has little ability to stabilize the coin. The introduction of safe collateral types has …