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Working Paper Series
The Concentration of Cleared Derivatives: Can Access to Direct CCP Clearing for End-Users Address the Challenge?
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.
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.
- G01 - Financial Economics - - General - - - Financial Crises
- G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
Keywords: Central counterparties (CCPs); clearinghouse; derivatives; financial markets
This item with handle RePEc:fip:fedhwp:wp-2019-06
is also listed on EconPapers
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