Recent regulation mandating the clearing of credit default swaps (CDS) by a Central Clearing Counterparties (CCP), has …

Following the 2008 financial crisis, regulation mandates the clearing of the CDS market through Central Clearing …

asymmetric and imperfect collateralization with the associated counter party credit risk. By introducing the collateral coverage … (CVA), and the collateral cost adjustment (CCA) independent from the credit risk. We have studied each term closely, and …

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 …

This paper studies the optimal clearing arrangement for bilateral financial contracts in which an assessment of …, at a cost, about the commitment of their borrowers, which affects the assessment of counterparty risk. Clearing through a … and reveal information. If information acquisition is incentive‐compatible, then lenders choose central clearing. If it is …

We consider financial networks where agents are linked to each other with financial contracts. A centralized clearing … 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 …

This paper examines the impact of central clearing on the credit default swaps (CDS) market using a sample of … voluntarily cleared single-name contracts. Consistent with central clearing reducing counterparty risk, CDS spreads increase … around the commencement of central clearing and are lower than settlement spreads published by the central clearinghouse …