Download This PaperClearing Risks in OTC Derivatives Markets: The CCP-Bank Nexus
18 Pages Posted: 29 Jan 2019
Date Written: December 1, 2018
Abstract
Systemically important banks and central counterparties (CCPs) interact in highly concentrated over-the-counter (OTC) derivatives markets. We outline the CCP-bank nexus to think about the endogenous interactions between banks and CCPs in periods of stress. As these interactions could potentially lead to destabilising feedback loops, the risks of banks and CCPs should be considered jointly, rather than in isolation.
JEL Classification: G01, G18, G21, G23
Suggested Citation: Suggested Citation
Faruqui, Umar and Huang, Wenqian and Takáts, Előd, Clearing Risks in OTC Derivatives Markets: The CCP-Bank Nexus (December 1, 2018). BIS Quarterly Review December 2018, Available at SSRN: https://ssrn.com/abstract=3316367
Do you have a job opening that you would like to promote on SSRN?
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.
