Similar Search Results

The pitfalls of central clearing in the presence of systematic risk

Kubitza, Christian; Pelizzon, Loriana; Getmansky, Mila - 2018 - This version: November 2018

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 … its counterparties: 1) correlation across and within derivative classes (i.e., systematic risk), 2) collateralization of …

Persistent link: https://www.econbiz.de/10011932176

Unintended consequences of the global derivatives market reform

Gandré, Pauline; Mariathasan, Mike; Merrouche, Ouarda; … - 2020

We investigate regulatory arbitrage during the G20's global derivatives market reform. Using hand-collected data on staggered reform progress, we find that banks shift their trading towards less regulated jurisdictions. The result is driven by agenda items – such as the promotion of central...

Persistent link: https://www.econbiz.de/10012179682

OTC derivatives : The G20 and New Risks Ahead

Oldani, Chiara - 2017

the post-crisis process: the exemption of non-financial operators from OTC derivative regulatory requirements, especially … unreported trades and counterparty risks to financial firms; there is still uncertainty around the pricing of derivative (i … in financial regulation pose risks of conflict and fragmentation that should be soon addressed by the G20 …

Persistent link: https://www.econbiz.de/10012946398

The Future of Centrally Cleared OTC Derivatives Markets

Callens, Evariest; Löber, Klaus - 2022

the status quo. Changes in markets, regulation, the environment, and global politics affect the business and risk profiles …

Persistent link: https://www.econbiz.de/10013404554

Federal Reserve Bank of New York Staff Reports Policy Perspectives on OTC Derivatives Market Infrastructure Staff Report No. 424

Duffie, Darrell - 2010

In the wake of the recent financial crisis, over-the-counter (OTC) derivatives have been blamed for increasing systemic risk. Although OTC derivatives were not a central cause of the crisis, the complexity and limited transparency of the market reinforced the potential for excessive risk-taking,...

Persistent link: https://www.econbiz.de/10013149182

Loss sharing in central clearinghouses : winners and losers

Kubitza, Christian; Pelizzon, Loriana; Getmansky, Mila - 2023

Central clearing counterparties (CCPs) were established to mitigate default losses resulting from counterparty risk in derivatives markets. In a parsimonious model, we show that clearing benefits are distributed unevenly across market participants. Loss sharing rules determine who wins or loses...

Persistent link: https://www.econbiz.de/10014482946

Close-Out Netting and Risk Management in Over-the-Counter Derivatives

Mengle, David - 2010

Close-out netting is a credit risk mitigation process that applies to over-the-counter derivative transactions between …

Persistent link: https://www.econbiz.de/10013142690

OTC Derivatives Market in India : Recent Regulatory Initiatives and Open Issues for Market Stability and Development

Arora, Dayanand - 2010

complementary. Regarding the introduction of new derivative products for credit risk transfer, the recent announcement by the RBI …

Persistent link: https://www.econbiz.de/10013143601

The Enigma of Clearing Buy Side OTC Derivatives

Johnson, Christian A. - 2013

Congress is currently debating whether to mandate the clearing of buy side OTC derivatives. Such an action, however, represents a seismic and unproven shift in how OTC derivatives function and how they are traded, processed and assessed, especially with respect to the highly customized products...

Persistent link: https://www.econbiz.de/10013095166

Zentrale Gegenparteien für den außerbörslichen Derivatehandel in der Praxis

Neuner, Stefan; Schäfer, Klaus - 2011

Persistent link: https://www.econbiz.de/10008907158