ISDA Publishes The Economics of Central Clearing: Theory and Practice,
05/25/2011 ISDANEW YORK, Monday, May 23, 2011 – The International Swaps and
Derivatives Association, Inc. (ISDA) today announced the
publication of an in-depth discussion and analysis of the purposes,
function and issues associated with central clearing of
over-the-counter (OTC) derivatives.
The paper, “The Economics of Central Clearing: Theory and Practice” is authored by Craig Pirrong, Professor of Finance at the Bauer College of Business at the University of Houston. It is the first in a series of discussion papers covering key topics in OTC derivatives, public policy and financial regulation that will be written by acknowledged experts in their fields of study. The new paper is particularly timely given the current regulatory proposals to expand the role of central clearing, and the active debate about the rules that should apply to it.
Central clearing can provide significant benefits to the stability of the financial system. Current statistics indicate that approximately 50 percent of the interest rate swaps volume outstanding has been cleared, and over $17 trillion of credit default swaps has been cleared.
http://www2.isda.org/news/isda-publishes-the-economics-of-central-clearing-theory-and-practice-a-discussion-paper-on-clearing-issues
The paper, “The Economics of Central Clearing: Theory and Practice” is authored by Craig Pirrong, Professor of Finance at the Bauer College of Business at the University of Houston. It is the first in a series of discussion papers covering key topics in OTC derivatives, public policy and financial regulation that will be written by acknowledged experts in their fields of study. The new paper is particularly timely given the current regulatory proposals to expand the role of central clearing, and the active debate about the rules that should apply to it.
Central clearing can provide significant benefits to the stability of the financial system. Current statistics indicate that approximately 50 percent of the interest rate swaps volume outstanding has been cleared, and over $17 trillion of credit default swaps has been cleared.
http://www2.isda.org/news/isda-publishes-the-economics-of-central-clearing-theory-and-practice-a-discussion-paper-on-clearing-issues