Swiss paper examines cost of different clearing set-ups
Authors examine three basic models of clearing, including that used by CCPs
More sophisticated clearing arrangements for over-the-counter (OTC) trades could be welfare-improving but are more demanding in terms of collateral, according to a working paper published by the Swiss National Bank.
In The Collateral Costs of Clearing, Cyril Monnet and Thomas Nellen compare the collateral and welfare implications of different post-trade arrangements, including both clearing and settlement operations.
They consider three clearing arrangements, including simple bilateral clearing
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