Derivatives and Collateral: Balancing Remedies and Systemic Risk

20 Pages Posted: 3 Apr 2014 Last revised: 28 Dec 2014

Date Written: May 12, 2014


This piece is forthcoming in the special symposium issue arising out of the 2014 American Bankruptcy Institute-University of Illinois College of Law academic symposium. U.S. bankruptcy law grants special rights and immunities to creditors in derivatives transactions, including virtually unlimited enforcement rights. This article examines whether exempting those transactions from bankruptcy’s automatic stay, including the stay of foreclosure actions against collateral, is necessary or appropriate in order to minimize systemic risk.

Keywords: bankruptcy, automatic stay, derivatives, systemic risk

Suggested Citation

Schwarcz, Steven L., Derivatives and Collateral: Balancing Remedies and Systemic Risk (May 12, 2014). University of Illinois Law Review, Forthcoming, Available at SSRN:

Steven L. Schwarcz (Contact Author)

Duke University School of Law ( email )

210 Science Drive
Box 90362
Durham, NC 27708
United States
919-613-7060 (Phone)
919-613-7231 (Fax)

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