Unintended Consequences of the Global Derivatives Market Reform

Pauline Gandré, Mike Mariathasan, Ouarda Merrouche and Steven Ongena
Additional contact information
Ouarda Merrouche: University of Lausanne

No 20-02, Swiss Finance Institute Research Paper Series from Swiss Finance Institute

Abstract: We investigate regulatory arbitrage during the G20’s global derivatives market reform. Using hand-collected data on staggered reform progress, we find that banks shift their trading towards less regulated jurisdictions. The result is driven by agenda items – such as the promotion of central clearing – that are costly, but do not directly benefit banks. We further document that subsidiaries in jurisdictions with more reform progress shift to riskier portfolios. Alleviating endogeneity concerns we show that reform progress is primarily driven by structural (time-invariant) factors.

Keywords: Bank regulation; Regulatory arbitrage; OTC Markets; Derivatives; Cross-border financial institutions; Financial risk (search for similar items in EconPapers)
JEL-codes: G15 G18 G21 G23 G28 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2020-01
New Economics Papers: this item is included in nep-ban
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3518411 (application/pdf)

Related works:
Journal Article: Unintended Consequences of the Global Derivatives Market Reform (2024)
Working Paper: Unintended Consequences of the Global Derivatives Market Reform (2024)
Working Paper: Unintended Consequences of the Global Derivatives Market Reform (2021)
Working Paper: Unintended Consequences of the Global Derivatives Market Reform (2021)
Working Paper: UNINTENDED CONSEQUENCES OF THE GLOBAL DERIVATIVES MARKET REFORM (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:chf:rpseri:rp2002

Access Statistics for this paper

More papers in Swiss Finance Institute Research Paper Series from Swiss Finance Institute Contact information at EDIRC.
Bibliographic data for series maintained by Ridima Mittal ().