Special Issue "Risk Management of Central Clearing Counterparties"

A special issue of Risks (ISSN 2227-9091).

Deadline for manuscript submissions: closed (28 February 2022) | Viewed by 234

Special Issue Editors

Prof. Dr. Edina Berlinger
E-Mail Website
Guest Editor
Department of Finance, Corvinus University of Budapest, 1093 Budapest, Hungary
Interests: contract theory; financial network; risk management; student loans; credit risk
Dr. Kata Váradi
E-Mail Website
Guest Editor
Department of Finance, Corvinus University of Budapest, 1093 Budapest, Hungary
Interests: market liquidity; market microstructure; central counterparties
Special Issues, Collections and Topics in MDPI journals
Dr. Barbara Dömötör
E-Mail Website
Guest Editor
Department of Finance, Corvinus University of Budapest, 1093 Budapest, Hungary
Interests: financial risk management; counterparty risk; peer-to-peer lending; financial institutions

Special Issue Information

Dear Colleagues,

After the global financial crisis, the importance of central clearing counterparties (CCPs) specialized in mitigating the counterparty credit risk of market transactions has grown significantly. The mission of these financial institutions is not only reducing partner risk at a cost-efficient way, but also compressing OTC markets and increasing transparency. In line with the ever-growing regulatory requirements, market developments, and technological advances, CCPs are continuously improving their risk management techniques based on a multilevel “waterfall” guarantee system.

With more centrally cleared transactions, however, CCPs might become a source of procyclicality and systemic risk. In turbulent times, increasing margin calls trigger fire-sales which contribute to adverse price movements, further increasing volatility, which might in turn necessitate higher margins again. At a large scale, this vicious circle might be detrimental to the financial system.

In this Special Issue, we invite high-quality research papers discussing new ideas related (but not limited) to the following questions:

  • How are CCPs operating in the global world?
  • What are the main tendencies and challenges CCPs are facing?
  • How can CCPs comply with regulatory requirements?
  • How can CCPs balance between contradictory objectives such as prudent operation and competitiveness?
  • How do CCPs contribute to netting trading positions and compressing markets?
  • How can the operation of CCPs be improved (more frequent settlements, merger or division of guarantee funds, improvement of trading platform and market infrastructure, etc.)
  • How should CCPs be regulated to avoid procyclicality?
  • How should special (gas, electricity, derivative, etc.) markets be regulated?
  • How can “too-big-to-fail” CCPs be recovered in the case of a default?
  • What are the unintended consequences of the present regulatory framework?
  • How are technological innovations such as blockchain, smart contracts, and other decentralized clearing mechanisms expected to complement or replace central clearing?

Prof. Dr. Edina Berlinger
Dr. Kata Váradi
Dr. Barbara Dömötör
Guest Editors

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All submissions that pass pre-check are peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 100 words) can be sent to the Editorial Office for announcement on this website.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Risks is an international peer-reviewed open access monthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 1400 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

  • clearing and settlement
  • guarantee system
  • margin requirements
  • procyclicality
  • systemic risk

Published Papers

There is no accepted submissions to this special issue at this moment.
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