IDEAS home Printed from https://ideas.repec.org/p/hal/journl/halshs-00087471.html
   My bibliography  Save this paper

Organised detachment : clearinghouse mechanisms in financial markets

Author

Listed:
  • Yuval Millo
  • Fabian Muniesa

    (CSI i3 - Centre de Sociologie de l'Innovation i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris Sciences et Lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique)

  • Nikiforos S. Panourgias
  • Susan V. Scott

Abstract

Bringing transactions to an end constitutes a crucial stage of market activity: the detachment between the counterparties engaged in a trade must be guaranteed. In financial markets, this operation relies on organisational technologies, such as clearinghouses, that can reach a high degree of sophistication. In this paper, we use financial clearinghouse mechanisms to explore how such detachment technologies are constructed. Based on several historical examples, our review shows that clearinghouse mechanisms developed on the basis of an increasingly IT-enabled organisational separation between the trading and clearing stages of market activity were a crucial factor that enabled clearinghouses to calculate the mutual obligations of the counterparties and perform the consequential steps. Our analysis goes on to reveal a paradoxical thread in the evolution of clearing: increasing informational and calculative capacity have lead clearing mechanisms to breach the separation on which their ability to operate was dependent – the boundary between trading activity and clearing processes. These findings shed a new light on the reflexive nature of IT-enabled market innovations and emphasise their role in re-introducing new forms of disorganisation back into contemporary financial markets.

Suggested Citation

  • Yuval Millo & Fabian Muniesa & Nikiforos S. Panourgias & Susan V. Scott, 2005. "Organised detachment : clearinghouse mechanisms in financial markets," Post-Print halshs-00087471, HAL.
    • Handle: RePEc:hal:journl:halshs-00087471
    DOI: 10.1016/j.infoandorg.2005.02.003
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Troels Krarup, 2016. "Economic Discourse and the European Integration of Financial Infrastructures and Financial Markets," Working Papers hal-03459272, HAL.
    2. Castelle, Michael, 2016. "Marketplace platforms or exchanges? Financial metaphors for regulating the collaborative economy," economic sociology. perspectives and conversations, Max Planck Institute for the Study of Societies, vol. 17(3), pages 14-26.
    3. Troels Krarup, 2016. "Economic Discourse and the European Integration of Financial Infrastructures and Financial Markets," SciencePo Working papers Main hal-03459272, HAL.
    4. Vipin P Veetil, 2017. "Coordination in Centralized and Decentralized Systems," International Journal of Microsimulation, International Microsimulation Association, vol. 10(2), pages 86-102.
    5. Pinzur, David, 2021. "Infrastructure, ontology and meaning: the endogenous development of economic ideas," LSE Research Online Documents on Economics 110932, London School of Economics and Political Science, LSE Library.
    6. Panourgias, Nikiforos S., 2015. "Capital markets integration: A sociotechnical study of the development of a cross-border securities settlement system," Technological Forecasting and Social Change, Elsevier, vol. 99(C), pages 317-338.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:halshs-00087471. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.