Central Clearing

Liquidity consequences of central clearing

Brief description

Central clearing counterparties transform counterparty credit risk into liquidity risk for its clients. The volume of required margin from their members causally influences both liquidity risk premia in the core of the US financial system and the liquidity risk exposure of dealer banks. We discuss implications for financial stability and regulation.

Project data

Contact person at DISO

Prof. Dr. Christoph Becker

Time period

Since 2019