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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. Iñaki Aldasoro & Fernando Avalos & Wenqian Huang, 2023. "Liquid assets at CCPs and systemic liquidity risks," BIS Quarterly Review, Bank for International Settlements, December.
    2. Peirce, Hester, 2016. "Derivatives Clearinghouses: Clearing the Way to Failure," Working Papers 03221, George Mason University, Mercatus Center.
    3. 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.
    4. 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.
    5. Paul Glasserman & Ciamac C. Moallemi & Kai Yuan, 2016. "Hidden Illiquidity with Multiple Central Counterparties," Operations Research, INFORMS, vol. 64(5), pages 1143-1158, October.
    6. Daron Acemoglu & Asuman Ozdaglar & Alireza Tahbaz-Salehi, 2015. "Systemic Risk and Stability in Financial Networks," American Economic Review, American Economic Association, vol. 105(2), pages 564-608, February.
    7. 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.).
    8. 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.
    9. Gerardo Ferrara & Xin Li & Daniel Marszalec, . "Central counterparty auction design," Journal of Financial Market Infrastructures, Journal of Financial Market Infrastructures.
    10. Jürg Mägerle & Thomas Nellen, 2011. "Interoperability between central counterparties," Working Papers 2011-12, Swiss National Bank.
    11. Duffie, Darrell & Scheicher, Martin & Vuillemey, Guillaume, 2015. "Central clearing and collateral demand," Journal of Financial Economics, Elsevier, vol. 116(2), pages 237-256.
    Full references (including those not matched with items on IDEAS)

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