On December 12, 2019, Fed in Print will introduce its new platform for discovering content. Please direct your questions to Anna Oates

Home About Latest Browse RSS Advanced Search

Federal Reserve Bank of Chicago
Working Paper Series
The Concentration of Cleared Derivatives: Can Access to Direct CCP Clearing for End-Users Address the Challenge?
Nahiomy Alvarez
John McPartland
Abstract

Cleared derivatives contracts are now concentrated among a small and dwindling number of institutions. Many policymakers and regulators have argued that this concentration has adverse consequences, some of which may have systemic risk implications. The authors explore the benefits and challenges of encouraging major end-users of derivatives to become direct clearing members of central counterparties (CCPs). If done prudently, increasing and diversifying the pool of clearing members and redistributing outstanding derivatives contracts across them may help CCPs become more resilient.


Download Full text
Cite this item
Nahiomy Alvarez & John McPartland, The Concentration of Cleared Derivatives: Can Access to Direct CCP Clearing for End-Users Address the Challenge?, Federal Reserve Bank of Chicago, Working Paper Series WP-2019-6, 20 Aug 2019.
More from this series
JEL Classification:
Subject headings:
Keywords: Central counterparties (CCPs); clearinghouse; derivatives; financial markets
DOI: 10.21033/wp-2019-06
For corrections, contact Bernie Flores ()
Fed-in-Print is the central catalog of publications within the Federal Reserve System. It is managed and hosted by the Economic Research Division, Federal Reserve Bank of St. Louis.

Privacy Legal