Newsletter

How Concentrated Is the Clearing Ecosystem and How Has It Changed Since 2007?

Abstract: After the global financial crisis of 2008–09, regulators across the globe enacted regulations to repair and strengthen financial markets. Part of the regulations were to mandate that more financial market contracts are cleared through central counterparties (CCPs). CCPs are financial institutions that guarantee performance of a financial contract—typically the buying and selling of contracts related to securities or derivatives. In the United States, the regulations for central clearing were established by the Dodd–Frank Act in 2010 and further promulgated by rules enacted by the Commodity Futures Trading Commission (CFTC) and the U.S. Securities and Exchange Commission (SEC).

Keywords: financial economics; Microeconomics; Economic history;

JEL Classification: D4; D53; G21; N22;

Bibliographic Information

Provider: Federal Reserve Bank of Chicago

Part of Series: Chicago Fed Letter

Publication Date: 2024-07

Volume: 497

Pages: 9