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What is clearing and why is it important?

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Abstract

In the financial market disruption of 2007?08, the once arcane topic of clearing of financial products took center stage in major policy debates. Generally speaking, clearing has to do with the nuts and bolts of the contractual performance of financial products after they have been traded.

Suggested Citation

  • Ed Nosal & Robert Steigerwald, 2010. "What is clearing and why is it important?," Chicago Fed Letter, Federal Reserve Bank of Chicago, issue Sep.
  • Handle: RePEc:fip:fedhle:y:2010:i:sep:n:278
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    File URL: http://www.chicagofed.org/digital_assets/publications/chicago_fed_letter/2010/cflseptember2010_278.pdf
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    Cited by:

    1. repec:fip:fedhep:y:2013:i:qii:p:30-46:n:vol.37no.2 is not listed on IDEAS
    2. Cyril Monnet & Thomas Nellen, 2021. "The Collateral Costs of Clearing," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 53(5), pages 939-970, August.
    3. David A. Marshall & Robert Steigerwald, 2013. "The role of time-critical liquidity in financial markets," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 37(Q II), pages 30-46.
    4. Ivana Ruffini & Robert Steigerwald, 2014. "OTC Derivatives—A Primer on Market Infrastructure and Regulatory Policy," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q III, pages 80-99.

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    Keywords

    Clearinghouses (Banking);

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