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 … derivative claims, and 3) loss sharing among clearing members. Our results have substantial implications for the design of …

clearing (BC) and central counterparty (CCP) clearing of OTC derivatives. I show how CCP mutualizes individual counterparty …

In the event of a clearing member's default, and as part of its default management process, a central counterparty (CCP …