The Inefficiency of Clearing Mandates

Author:

Pirrong Craig

Publisher

Elsevier BV

Reference22 articles.

1. The Clearing Association in Futures Markets: Guarantor and Regulator;H Baer;Journal of Futures Markets,1983

2. default by a clearing member's customer can impose losses on other customers if the default is sufficiently large to make the clearing member insolvent. Thus, customers' incentives to monitor the creditworthiness of a clearing member is not zero, but it is reduced relative to the incentive in a bilateral market;Morgan Jordan;Journal of Finance,1990

3. according to a survey conducted by the International Swaps and Derivatives Association, 70 percent of all OTC derivatives trades were subject to collateral agreements, and collateral covers 69 percent of all OTC derivatives exposure and 78 percent of bank and broker-dealer exposures See International Swaps and Derivatives Association;ISDA Margin Survey,2009

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