The demand for central clearing: To clear or not to clear, that is the question!

Bellia, Mario; Girardi, Giulio; Panzica, Roberto; Pelizzon, Loriana; Peltonen, Tuomas

doi:10.1016/j.jfs.2024.101247

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Cited by 3 publications

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Participants’ preferences for settlement netting of derivatives contracts

Takino

2025

Finance Research Letters

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Participants’ preferences for settlement netting of derivatives contracts

Takino

2025

Finance Research Letters

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Margin constraints and asset prices

Ahn

2024

Review of Finance

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I study the effects of regulatory policy changes on interest rate option prices: margin tightening from the introduction of mandatory interest rate swap clearing by the Dodd–Frank Act in 2010 and margin loosening from the counterbalance of voluntary swaption clearing and synthetic derivatives to the uncleared margin rule in 2016. Employing these variations as exogenous shocks for a quasi-experimental design, I show that swaption prices consistently respond to changes in margin requirements. The results are consistent with theories on the expected margin premium, where the constrained agent holds short positions in zero net supply.

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Repo Intermediation and Central Clearing: An Analysis of Sponsored Repo

Copeland,

Kahn

2024

Staff Reports (Federal Reserve Bank of New York)

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This paper evaluates the salient forces behind a dealer-intermediary’s decision to move a bilateral repo transaction with a customer into central clearing. We provide evidence that dealers turn to sponsored repo on occasions when balance sheet space is scarce, such as when there is a large issuance of Treasury coupon securities and end-of-month dates. We also find that sponsored repo spreads tend to be affected by a range of factors, with the three largest drivers being money market fund assets, a proxy for hedge fund demand for repo funding, and end-of-month dates.

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The demand for central clearing: To clear or not to clear, that is the question!

Cited by 3 publications

References 23 publications

Participants’ preferences for settlement netting of derivatives contracts

Participants’ preferences for settlement netting of derivatives contracts

Margin constraints and asset prices

Repo Intermediation and Central Clearing: An Analysis of Sponsored Repo

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