Abstract
Central counterparties (CCPs) function as financial infrastructures for capital markets in derivatives. They are designed to reduce aggregate counterparty credit risk. Although CCPs have existed for well over a century, they have only gained prominence after the Great Financial Crisis compelled the G20 to implement the mandatory clearing policy to make over-the-counter derivative transactions safer. This has led to a boom in CCP literature, 60% of which has been published in the last 5 years. This article provides a review of the literature on derivative CCPs focusing on some fundamental topics regarding the raison d'être, resilience, and governance of the CCP.
Original language | English |
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Pages (from-to) | 2009-2022 |
Journal | Journal of Futures Markets |
Volume | 41 |
Issue number | 12 |
DOIs | |
Publication status | Published - Dec 2021 |