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OTC Derivatives: Bilateral Trading & Central Clearing

OTC Derivatives: Bilateral Trading & Central Clearing


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About the Book

The OTC derivatives market has been hit by a massive wave of regulatory change. Capital and margin requirements have increased, trade reporting has been mandated, and execution mechanisms are evolving. Most of all, central clearing is being imposed for many transactions.

OTC Derivatives: Bilateral Trading and Central Clearing explains the new rules and the new models. It discusses the traditional bilateral market, then sets out how this will change due to mandatory central clearing and the new ways in which OTC derivatives will have to be traded, reported, and processed. The risks of OTC derivatives clearing houses are discussed in detail, as are the protections that CCPs have against these risks. The book also looks at alternatives to some of the policy decisions that have been made, showing the balance between costs and benefits of various different approaches to derivatives market stability. The book is both a detailed primer on OTC derivatives clearing and a powerful insight into post-crisis financial regulation.

Key features of the book include:

- A discussion of the capital rules for OTC derivatives counterparty credit risk in Basel III;
- An account of OTC derivatives trade processing in both bilateral and cleared markets;
- A detailed account of the risk profile of OTC derivatives CCPs;
- An explanation of the risks run in various collateral segregation models; and
- A comparison of various macro-prudential tools for enhancing the financial stability of OTC derivatives markets.

About the Author: David Murphy is a leading expert in financial stability and regulatory capital. He has been involved in financial regulation and derivatives for over fifteen years, working as a supervisor, risk manager, and most recently as founder of Rivast consulting, a boutique risk management consultancy. He had a front row seat in the post-crisis financial reforms as Head of Risk at ISDA, and hence he is ideally placed to comment on the financial system that is emerging from them. Dr. Murphy has published widely on risk management, OTC derivatives and capital, and is well known for his contributions to financial regulation.


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Product Details
  • ISBN-13: 9781137293855
  • Publisher: Palgrave MacMillan
  • Publisher Imprint: Palgrave Macmillan
  • Depth: 25
  • Language: English
  • Returnable: Y
  • Spine Width: 23 mm
  • Weight: 639 gr
  • ISBN-10: 1137293853
  • Publisher Date: 07 Aug 2013
  • Binding: Hardback
  • Height: 236 mm
  • No of Pages: 287
  • Series Title: Global Financial Markets
  • Sub Title: An Introduction to Regulatory Policy, Market Impact and Systemic Risk
  • Width: 163 mm


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