Search Results

Showing results 1 to 3 of approximately 3.

(refine search)
SORT BY: PREVIOUS / NEXT
Keywords:Margin 

Journal Article
Cleared Margin Setting at Selected Central Counterparties

Interviews with senior personnel at six of the world?s largest central counterparty clearing houses and research by financial markets staff shed light on regulations, principles, and best practices in margin setting for derivatives.
Economic Perspectives , Issue 4

Working Paper
Central Clearing and Systemic Liquidity Risk

By stepping between bilateral counterparties, a central counterparty (CCP) transforms credit exposure. CCPs generally improve financial stability. Nevertheless, large CCPs are by nature concentrated and interconnected with major global banks. Moreover, although they mitigate credit risk, CCPs create liquidity risks, because they rely on participants to provide cash. Such requirements increase with both market volatility and default; consequently, CCP liquidity needs are inherently procyclical. This procyclicality makes it more challenging to assess CCP resilience in the rare event that one or ...
Finance and Economics Discussion Series , Paper 2020-009

Working Paper
An Empirical Analysis of Futures Margin Changes: Determinants and Policy Implications

Margin regulation raises two policy concerns. First, an alignment of margins to volatility can amplify procyclicality, leading to a build-up of excess leverage in good times and a forced deleverage in bad times. Second, competition among central counterparties (CCPs) can result in lower margin levels in order to attract more trading volume, which is referred to as a "race to the bottom." Motivated by these issues, we empirically analyze the determinants of margin changes by using a data set of various futures margins from Chicago Mercantile Exchange (CME) Group. We first find that CME ...
Finance and Economics Discussion Series , Paper 2014-86

FILTER BY year

FILTER BY Content Type

FILTER BY Author

FILTER BY Jel Classification

G28 2 items

E58 1 items

G01 1 items

G18 1 items

G21 1 items

G23 1 items

show more (2)

PREVIOUS / NEXT