Federal Reserve Bank of Chicago
John McPartland spent much of his career designing and operating netting, clearing, and risk mitigation systems. As Senior Policy Advisor to the Federal Reserve Bank of Chicago, he contributes to the Federal Reserve’s position on policy issues involving clearing and netting systems, supervisory oversight of exchange traded and OTC derivatives, international competitiveness, and regulatory reform of domestic financial markets. He has been a settlement banker, a trader, FCM executive, and deputy manager of the CME Clearing House. He has been a guest lecturer at the London School of Economics, the University of Wisconsin and the IIT Center for Financial Markets.
One for my baby (and one more for the road): incentives, default waterfalls and central counterparty skin-in-the-game
In this paper, the authors argue that both for-profit central counterparties and their clearing members should contribute to the default waterfall, with a CCP’s two contributions coming directly before and directly after the tranche of clearing member…
In this paper, the authors answer three questions about the appropriate allocation of nondefault losses at central counterparties.
This paper stuides a relevant policy question: does interoperability of cash equity CCPs also imply that it is beneficial to introduce interoperability for derivative CCPs?