Taking a Deep Dive into Margins for Cleared Derivatives

Rebecca Lewis

Chicago Fed Letter, 2016, No 371

Abstract: Central counterparties (CCPs) are institutions that become the buyer to every seller and seller to every buyer in cleared markets. By design, CCPs have a matched book of positions. As a result, their liabilities to clearing members with winning positions are exactly matched by incoming payments from those on the losing side of positions.

Keywords: derivatives; clearinghouses; Central counterparties (CCPs) (search for similar items in EconPapers)
Date: 2016
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