Search Results

No results found.

(refine search)
SORT BY: PREVIOUS / NEXT
Keywords:race to the bottom 

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 Content Type

FILTER BY Author

FILTER BY Jel Classification

G01 1 items

G18 1 items

G28 1 items

FILTER BY Keywords

Margin 1 items

and Dodd-Frank Act 1 items

central counterparties 1 items

futures 1 items

procyclicality 1 items

race to the bottom 1 items

show more (2)

PREVIOUS / NEXT