Clearing Services for Global Markets
A Framework for the Future Development of the Clearing Industry

This book analyses the efficiency of clearing and clearing industry structure, and identifies the most preferable future structure for the clearing industry.

Tina P. Hasenpusch (Author)

9780521518710, Cambridge University Press

Hardback, published 24 September 2009

570 pages
24.4 x 17 x 3.2 cm, 1.1 kg

"Particularly in the light of recent market dislocations, clearing is critical for the assurance of a healthy functioning of the financial markets. This book will have an enormous audience." - Mark Spanbroek, Partner of a privately-held electronic trading firm

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.

Subject Areas: Financial law [LNP], Banking [KFFK], Finance & accounting [KF], Economics [KC], Economics, finance, business & management [K]