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Taking a Deep Dive into Margins for Cleared Derivatives


Abstract: Central counterparties (CCPs) are institutions that become the buyer to every seller and seller to every buyer in cleared markets. By design, CCPs have a matched book of positions. As a result, their liabilities to clearing members with winning positions are exactly matched by incoming payments from those on the losing side of positions.

Keywords: derivatives; clearinghouses; Central counterparties (CCPs);

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Bibliographic Information

Provider: Federal Reserve Bank of Chicago

Part of Series: Chicago Fed Letter

Publication Date: 2016

Order Number: 371