needs to operate a multi-level guarantee system that can absorb losses of clearing members' defaults. Our main question is … how the size of the guarantee system changes and how the cross-guarantee undertaking changes between clearing members and … systems. However, if the CCP wants to provide cheaper services, or if the clearing members are willing to cross-guarantee each …

demand of new margin and clearing practices and regulations. We decompose collateral demand for both customers and dealers … impact on collateral demand of more widespread initial margin requirements, increased novation of CDS to central clearing … parties (CCPs), an increase in the number of clearing members, the proliferation of CCPs of both specialized and non …

clearinghouse that acts as a seller to every buyer and a buyer to every seller. Proponents of central clearing argue that this … benefits of central clearing are manifest, the downsides are less obvious; clearinghouses concentrate risk and pose enormous … access to central bank credit is crucial, particularly when central clearing of volatile CDSs is required …

risk, my results indicate that CDS spreads widen with the initiation of central clearing. I document that even though … dealer risk is priced in CDS spreads and an increase in dealer risk narrows spreads, the initiation of central clearing does … provide evidence that CDS volatility and central clearing widen CDS spreads jointly. Because the margin requirements of CCPs …

) the business impact of the LEI, and associated reporting and clearing requirements, on OTC derivatives markets business …