reluctance to clear derivative trades in the absence of a central clearing obligation. We develop a comprehensive understanding … 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 …

reluctance to clear derivative trades in the absence of a central clearing obligation. We develop a comprehensive understanding … 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 …

Through the lens of market participants' objective to minimize counterparty risk, we investigate central clearing in … suggest that central clearing always reduces counterparty risk for a sufficiently large number of clearing members. We show … that this is not the case - mostly because of loss sharing. Central clearing can increase counterparty risk, particularly …

stablecoin. DAI works through a set of autonomous smart contracts, in which users deposit cryptocurrency collateral, typically …, we show that DAI price covaries negatively with returns to risky collateral. The peg-price volatility is related to … collateral risk, while the stability rate has little ability to stabilize the coin. The introduction of safe collateral types has …

Following the 2009 G-20 clearing mandate, international standard setting bodies (SSBs) have outlined a set of … clearing members for their central counterparty exposures. There is still no consensus among CCP regulators and bank regulators … risk capital requirements may create an obscure environment disincentivizing the central clearing of over the counter (OTC …