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Central Counterparty Management of Liquid and Prefunded Resources

Author

Listed:
  • John Heilbron
  • Nick Schwartz

Abstract

Central counterparties rely on liquid and capital resources to manage member defaults. Physically settled contracts increase liquid resource needs (Working Paper no. 26-04).

Suggested Citation

  • John Heilbron & Nick Schwartz, 2026. "Central Counterparty Management of Liquid and Prefunded Resources," Working Papers 26-04, Office of Financial Research, US Department of the Treasury.
    • Handle: RePEc:ofr:wpaper:26-04
    as

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    File URL: https://www.financialresearch.gov/working-papers/files/OFRwp26-04_ccp-liquid-prefunded-resource-management.pdf
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    References listed on IDEAS

    as
    1. Matthew Guse & Matthew Hoops & Maria G. Perozek, 2024. "Central Clearing Counterparties in the Financial Accounts of the United States," FEDS Notes 2024-07-12, Board of Governors of the Federal Reserve System (U.S.).
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    3. Iñaki Aldasoro & Fernando Avalos & Wenqian Huang, 2023. "Liquid assets at CCPs and systemic liquidity risks," BIS Quarterly Review, Bank for International Settlements, December.
    4. John Heilbron & Stathis Tompaidis, 2025. "The Impact of CCP Liquidity and Capital Demands on Clearing Members Under Stress," Working Papers 25-03, Office of Financial Research, US Department of the Treasury.
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    10. Wenqian Huang & Elöd Takáts, 2024. "Model Risk at Central Counterparties: Is Skin in the Game a Game Changer?," International Journal of Central Banking, International Journal of Central Banking, vol. 20(3), pages 161-184, July.
    11. Christian Kubitza & Loriana Pelizzon & Mila Getmansky Sherman, 2024. "Loss Sharing in Central Clearinghouses: Winners and Losers," The Review of Asset Pricing Studies, Society for Financial Studies, vol. 14(2), pages 237-273.
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