relatively large number of asset classes, central clearing increases the mean and variance of net exposures, which may lead to …

default impacts the incentives of other agents to escape default. Agents' payoffs are determined by the clearing mechanism …, we show that introducing a central clearing counterparty achieves the efficient equilibrium at no additional cost. …

clearing mechanism introduced in the seminal contribution of Eisenberg and Noe (2001). We first show the existence of a Nash …

clearing mechanism introduced in the seminal contribution of Eisenberg and Noe (2001). We first show the existence of a Nash …

lattice structure, leading to the existence of a least and a greatest clearing payment matrix. Previous research has shown how … decentralized clearing selects the least clearing payment matrix. We present a centralized approach towards clearing in order to … select the greatest clearing payment matrix. To do so, we formulate the determination of the greatest clearing payment matrix …

present a convenient representation of bankruptcy rules. A clearing payment matrix is a payment matrix consistent with the … prevailing bankruptcy rules that satisfies limited liability and priority of creditors. Both clearing payment matrices and the … decentralized clearing processes and show the convergence of any such process in finitely many steps to the least clearing payment …

to specify the way agents are going to be rationed. A clearing payment matrix is a payment matrix consistent with the … prevailing bankruptcy rules that satisfies limited liability and priority of creditors. Since clearing payment matrices and the … processes. We show the convergence of any such process infinitely many iterations to the least clearing payment matrix. When the …