Derivatives clearing and settlement: a comparison of central counterparties and alternative structures

Most exchange-traded and some over-the-counter (OTC) derivatives are cleared and settled through clearinghouses that function as central counterparties (CCPs). Most OTC derivatives are settled bilaterally. This article discusses how these alternative mechanisms affect the functioning of derivatives markets and describes some of the advantages and disadvantages of each.

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Year of publication:	2006
Authors:	Bliss, Robert R. ; Steigerwald, Robert
Published in:	Economic Perspectives. - Federal Reserve Bank of Chicago. - 2006, Q IV, v. 30, no. 4, p. 22-29
Publisher:	Federal Reserve Bank of Chicago
Subject:	Banks and banking \| Central \| Derivative securities \| Clearinghouses (Banking)

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Extent:	application/pdf
Type of publication:	Article
Language:	English
Source:	RePEc - Research Papers in Economics

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