Public policy surrounding central counterparties (‘CCPs’) is beset by conflicts between stakeholders. These turn on who bears which risks, who profits from clearing, and who has what say in CCP governance. They involve CCP equity holders, clearing members, clients, regulators, and taxpayers,...

In this article, we use game theory to study crisis dynamics at derivatives clearinghouses (CCPs). The mandate to clear standardized derivatives through CCPs has been a pillar of post-crisis reforms. Since the resilience of CCPs is now crucial to financial stability, regulators, academics and...