OTC Derivatives: Bilateral Trading and Central Clearing: An Introduction to Regulatory Policy, Market Impact and Systemic Risk

by David Murphy

Overview

After the credit crisis, supervisors enacted a range of financial reforms. In particular, they radically changed the nature of the OTC derivatives market via a number of measures, notably mandatory central clearing. This book discusses the market before the crisis, explains what central clearing is, and outlines the consequences of the new rules.

Product Details

ISBN-13:	9781137293855
Publisher:	Palgrave Macmillan UK
Publication date:	08/07/2013
Series:	Global Financial Markets
Edition description:	2013
Pages:	298
Product dimensions:	6.10(w) x 9.30(h) x 1.00(d)

About the Author

David Murphy is a leading expert in financial stability and regulatory capital. He has been involved in financial regulation and derivatives for over fifteen years, working as a supervisor, risk manager, and most recently as founder of Rivast consulting, a boutique risk management consultancy. He had a front row seat in the post-crisis financial reforms as Head of Risk at ISDA, and hence he is ideally placed to comment on the financial system that is emerging from them. Dr. Murphy has published widely on risk management, OTC derivatives and capital, and is well known for his contributions to financial regulation.

Table of Contents

PART I: UNDERSTANDING BILATERAL RELATIONSHIPS 1. Over-the-Counter Derivatives and Repurchase Agreements 2. Bilateral Relationships 3. Risks in Bilateral Relationships 4. Bilateral Relationships in the Crisis PART II 5. The New Model 6. Relationships in a Trilateral World 7. Risks 8. Design Choices and Financial Stability 9. The Future