Let's make it clear: how central counterparties save(d) the day
Cyril Monnet ()
Business Review, 2010, issue Q1, 1-10
The bankruptcy of Lehman Brothers in 2008 will certainly be featured in history books as one of the greatest financial failures so far, but it will also be recorded as yet another episode of the historically successful performance of clearing arrangements in ensuring the resiliency of markets. Recognizing the usefulness of safe and sound clearing and settlement procedures, the Federal Reserve has recently supported the attempt to shift the clearing of some contracts to a central counterparty. In this article, Cyril Monnet outlines the arguments in favor of central counterparty clearing, the economic rationale for trade clearing through a central counterparty, and some possible limits to the advantages of clearing trades through a central counterparty.
Keywords: Bankruptcy; Risk (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
http://www.philadelphiafed.org/research-and-data/p ... l-counterparties.pdf (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:fip:fedpbr:y:2010:i:q1:p:1-10
Ordering information: This journal article can be ordered from
http://www.phil.frb. ... airs/pubs/index.html
Access Statistics for this article
Business Review is currently edited by Becca Sells
More articles in Business Review from Federal Reserve Bank of Philadelphia Contact information at EDIRC.
Series data maintained by Beth Paul ().