central clearing, as intended. We introduce a model of OTC clearing to compare the total capital and collateral costs when … bilateral and central clearing; (ii) the margin period of risk used to set initial margin and capital requirements; and (iii … clearing and, when it does, the incentive may be driven by questionable differences in CCPs' default waterfall resources. We …

of financial market participants. The central clearing sector is no exception to this. Moreover, with its crucial … position as bulwark against systemic instability, the central clearing sector sits at the heart of modern financial markets and …

Market disruptions in response to the COVID pandemic spurred calls for the consideration of marketwide central clearing … netting efficiencies of increased central clearing using nonpublic Treasury TRACE transactions data. We find that central … clearing of all outright trades would have lowered dealers' daily gross settlement obligations by roughly $330 billion (60 …

traded over the counter. We find substantial and persistent heterogeneity in derivative prices consistent with a pass …