Discussion of OTC Derivatives Reform: Netting and Networks
نویسندگان
چکیده
The paper by Alexandra Heath, Gerard Kelly and Mark Manning does an excellent job of extending existing models of the effects of requiring use of CCPs for OTC derivatives on counterparty risk and implications for collateral demand. The innovations include: first, considering a particular market structure where there are core institutions in the OTC markets that also trade with and provide services to a periphery of other participants; second, allowing for differential involvement of the core and periphery in CCPs; and third, introducing the role of collateral requirements for initial and variation margins.
منابع مشابه
OTC Derivatives Reform: Netting and Networks
In the wake of the global financial crisis, member jurisdictions of the G20 have embarked upon an ambitious program of reforms to the structure and operation of financial markets. One key element of the reform program is to improve the management of counterparty risk and reduce interconnectedness in over-the-counter (OTC) derivative markets by encouraging greater use of centralised financial ma...
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