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Why Is a CCP failure very unlikely?

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  • McLaughlin, Dennis
  • Berndsen, Ron

    (Tilburg University, Center For Economic Research)

Abstract

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Suggested Citation

  • McLaughlin, Dennis & Berndsen, Ron, 2021. "Why Is a CCP failure very unlikely?," Discussion Paper 2021-002, Tilburg University, Center for Economic Research.
    • Handle: RePEc:tiu:tiucen:39f37d9b-7b60-4d46-9608-dc8fc24410ae
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    File URL: https://pure.uvt.nl/ws/portalfiles/portal/46839740/2021_002.pdf
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    References listed on IDEAS

    as
    1. Berndsen, Ron, 2020. "Five Fundamental Questions on Central Counterparties," Discussion Paper 2020-028, Tilburg University, Center for Economic Research.
    2. Marco Moscadelli, 2004. "The modelling of operational risk: experience with the analysis of the data collected by the Basel Committee," Temi di discussione (Economic working papers) 517, Bank of Italy, Economic Research and International Relations Area.
    3. Vincent Bignon & Guillaume Vuillemey, 2020. "The Failure of a Clearinghouse: Empirical Evidence [Counterparty risk externality: centralized versus over-the-counter markets]," Review of Finance, European Finance Association, vol. 24(1), pages 99-128.
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    Cited by:

    1. Bardoscia, Marco & Ferrara, Gerardo & Vause, Nicholas & Yoganayagam, Michael, 2021. "Simulating liquidity stress in the derivatives market," Journal of Economic Dynamics and Control, Elsevier, vol. 133(C).
    2. Bardoscia, Marco & Caccioli, Fabio & Gao, Haotian, 2022. "Efficiency of central clearing under liquidity stress," Bank of England working papers 1002, Bank of England.
    3. Melinda Friesz & Kira Muratov-Szabó & Andrea Prepuk & Kata Váradi, 2021. "Risk Mutualization in Central Clearing: An Answer to the Cross-Guarantee Phenomenon from the Financial Stability Viewpoint," Risks, MDPI, vol. 9(8), pages 1-19, August.

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    More about this item

    Keywords

    CCP; G20 central clearing mandate; financial stability; CCP waterfall; non default losses;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General

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