Refine
Year of publication
Document Type
- Working Paper (62)
- Part of Periodical (12)
- Article (6)
- Report (1)
Has Fulltext
- yes (81)
Is part of the Bibliography
- no (81)
Keywords
- financial stability (6)
- coronavirus (5)
- OTC markets (4)
- Central Clearing (3)
- Coronavirus (3)
- Corporate Bonds (3)
- Corporate Social Responsibility (3)
- Counterparty Risk (3)
- Covid-19 (3)
- Credit Risk (3)
- Derivatives (3)
- Eligibility premium (3)
- Financial Stability (3)
- Liquidity Provision (3)
- Loss Sharing (3)
- Sustainable Finance (3)
- Sustainable Investments (3)
- COVID-19 (2)
- COVID-19 news (2)
- Capital Markets Union (2)
- Car Loans (2)
- Collateral (2)
- Collateral Policy (2)
- Corporate Debt Structure (2)
- Corporate Finance (2)
- ECB (2)
- ESG Rating Agencies (2)
- ETFs (2)
- European Market Infrastructure Regulation (EMIR) (2)
- Financial Crisis (2)
- Financial Markets (2)
- Hawkes processes (2)
- High-Frequency Traders (HFTs) (2)
- Liquidity (2)
- Liquidity provision (2)
- Margin (2)
- Non-performing Loans (2)
- Price Discovery (2)
- Regulation (2)
- Sovereign Risk (2)
- Systematic Risk (2)
- Systemic Risk (2)
- banking (2)
- competition (2)
- corporate finance (2)
- credit scoring (2)
- probability of default (2)
- public debt (2)
- small and medium enterprises (2)
- Adverse Selection (1)
- Asset Allocation (1)
- Asset Liquidation (1)
- Asset Management Companies (1)
- Auditing (1)
- BRRD (1)
- Bailin (1)
- Bailout (1)
- Bank Bailout (1)
- Bank Capital (1)
- Bank Capitalization (1)
- Bank Recapitalization (1)
- Bank Resolution (1)
- Banking Union (1)
- Board Appointments (1)
- Business Cycle (1)
- CAPM (1)
- CCP (1)
- CDS (1)
- CMU (1)
- Capital Purchase Program (1)
- Central Counterparty Clearing House (CCP) (1)
- Central counterparty clearing house (CCP) (1)
- Centrality (1)
- Collateral policy (1)
- Comovements (1)
- Contagion (1)
- Corporate bonds (1)
- Credit Default Swap (CDS) (1)
- Credit default swap (CDS) (1)
- Derivate (1)
- Designated Market Makers (DMMs) Market Making (1)
- Dictionary (1)
- Disclosure (1)
- Disintegration (1)
- Dividend Payments (1)
- ESG (1)
- ESG Investing (1)
- ESG rating agencies (1)
- ESG ratings (1)
- Energy Efficiency (1)
- Environmental, social, and governance factors (ESG) (1)
- Equity fund (1)
- Euro-zone Government Bonds (1)
- European Central Bank (ECB) (1)
- Feedback (1)
- Financial Crises (1)
- Financial stability (1)
- Fiscal Capacity (1)
- Fixed Income (1)
- Fixed-Income (1)
- Flash Crash (1)
- Flash crash (1)
- Forbearance (1)
- Frictions (1)
- High Frequency Data (1)
- High-Frequency Trading (HFT) (1)
- High-Level-Forum (1)
- High-frequency event study (1)
- Hybrid Markets (1)
- Impulse-response (1)
- Information Frictions (1)
- Insurance Companies (1)
- Interbank Markets (1)
- Interconnectedness (1)
- Interdealer Brokerage (1)
- Interim Report (1)
- Internal Controls (1)
- International Finance (1)
- Investor Protection (1)
- Investor sentiment (1)
- Jumps (1)
- Kontrahentenrisiko (1)
- LSTM neural networks (1)
- Leverage (1)
- Limits to Arbitrage (1)
- Liquidity Coinsurance (1)
- Low-emission vehicles (1)
- MTS Bond Market (1)
- Machine learning (1)
- Market Fragility (1)
- Market Integrity (1)
- Market Liquidity (1)
- Market Microstructure (1)
- Market Oversight (1)
- Market efficiency (1)
- Market fragility (1)
- Mitigation (1)
- Money Market (1)
- Mortgages (1)
- Mundellian trilemma (1)
- Mutually exciting processes (1)
- NLP (1)
- Network theory (1)
- OTC Markets (1)
- OTC derivatives (1)
- OTC-Märkte (1)
- Opening Auction (1)
- Opening Call Auction (1)
- P2P lending (1)
- Policy measures in the EU (1)
- Portfolio Management (1)
- Portfolio choice (1)
- Pre-Opening (1)
- Proprietary Trading (1)
- Public financial news (1)
- Quantitative Easing (1)
- Quantitative easing (1)
- Repo Specialness (1)
- Retail Challenge (1)
- Risk Pooling (1)
- Risk sharing (1)
- Russian Sanction (1)
- S&P 500 (1)
- SFDR (1)
- SIFI (1)
- SWIFT (1)
- Search Frictions (1)
- Secondary Loan Markets (1)
- Securitisation (1)
- Securitization (1)
- Sentiment Analysis (1)
- Sentiment analysis (1)
- Sicherheitenmarge (1)
- Similarity (1)
- Slow-Moving Capital (1)
- Slow-moving capital (1)
- Social media (1)
- Socially responsible investing (1)
- Sovereign (1)
- Sovereign CDS (1)
- Sovereign credit risk (1)
- Sovereign risk (1)
- Stock Markets (1)
- Stock market (1)
- Stock markets (1)
- Supervisory Achitecture (1)
- Sustainabilty (1)
- Systematisches Risiko (1)
- Systemic risk (1)
- TARP (1)
- Taxonomie (1)
- Term Structure of Interest Rates (1)
- Transparency (1)
- Twitter (1)
- Unconventional Monetary policy (1)
- Venue Choice (1)
- Verlustbeteiligung (1)
- Wirecard (1)
- WpHG (1)
- Zentrales Clearing (1)
- asset-backed securities (1)
- assetbacked securities (1)
- bank lending (1)
- central counterparties (1)
- conventional monetary policy (1)
- credit risk (1)
- debt cost (1)
- derivatives (1)
- distress (1)
- equity (1)
- equity cost (1)
- event study (1)
- financial market data (1)
- financial market regulation (1)
- financial market supervision (1)
- flash crashes (1)
- fragmentation (1)
- hedging (1)
- high-frequency data (1)
- high-frequency traders (HFTs) (1)
- insurance industry (1)
- interconnections (1)
- interest rate risk (1)
- liquidity (1)
- liquidity provision (1)
- losses (1)
- market making (1)
- micro data transparency (1)
- monetary policy surprise (1)
- network (1)
- network analysis (1)
- pandemics (1)
- policy measures in the EU (1)
- portfolio management (1)
- recapitalization (1)
- resiliency (1)
- risk management (1)
- risk sharing (1)
- sovereign bonds (1)
- strategies (1)
- sustainable investments (1)
- systematic risk (1)
- systemic risk (1)
- unconventional monetary policy (1)
- volatility (1)
Through the lens of market participants' objective to minimize counterparty risk, we provide an explanation for the reluctance to clear derivative trades in the absence of a central clearing obligation. We develop a comprehensive understanding of the benefits and potential pitfalls with respect to a single market participant's counterparty risk exposure when moving from a bilateral to a clearing architecture for derivative markets. Previous studies suggest that central clearing is beneficial for single market participants in the presence of a sufficiently large number of clearing members. We show that three elements can render central clearing harmful for a market participant's counterparty risk exposure regardless of the number of its counterparties: 1) correlation across and within derivative classes (i.e., systematic risk), 2) collateralization of derivative claims, and 3) loss sharing among clearing members. Our results have substantial implications for the design of derivatives markets, and highlight that recent central clearing reforms might not incentivize market participants to clear derivatives.