Clearing Services for Global Markets: A Framework for the Future Development of the Clearing Industry
Cambridge University Press
Edition: Illustrated, 9/24/2009
EAN 9780521518710, ISBN10: 0521518717
Hardcover, 570 pages, 24.4 x 17 x 3.2 cm
Language: English
Clearing forms the core part of a smooth and efficiently functioning financial market infrastructure. Traditionally, it has been provided by clearing houses, most of which today act as a 'central counterparty' (CCP) between the two sides of a trade. The rapid growth of cross-border trading has sparked discussion on the most efficient industry structure - particularly in Europe and the US. At the heart of this discussion lies the question of whether the implementation of a single clearing house creates greater benefits than a more competitive but interlinked market structure. This is the starting point for this book, which analyses the efficiency of clearing and clearing industry structure. Along with clear-cut definitions and a concise characterisation and descriptive analysis of the clearing industry, the book determines the efficiency impact of various cross-border integration and harmonisation initiatives between CCPs. This serves to identify the most preferable future structure for the clearing industry.
List of figures
List of abbreviations
Acknowledgements
Foreword
1. Introduction
2. Setting the stage - definitions and industry setting
3. Defining the core issues - efficiency and network strategies
4. Collecting empirical insights - introduction to the empirical study
5. Analysing costs of derivatives clearing - transaction cost studies
6. Exploring theoretical basics - scale effects in clearing
7. What theory reveals - framework for efficiency analysis of network strategies
8. Checking theory against reality - case studies of network strategies
9. Quantifying the efficiency impact - European network strategies
10. Introducing the future network economy - development of the clearing industry
11. Summary, discussion and recommendations for future research
Appendices
Bibliography
Index.
'The book features three real-world case studies bringing clearing to life. It is a thorough and insightful exposition of clearing and a must-read for anyone interested in the subject matter.' Paul J. Brody, Chief Financial Officer of Interactive Brokers Group and Timber Hill LLC, and Board Member of the Options Clearing Corporation