Design Choices in Central Clearing: Issues Facing Small Advanced Economies

Release date
23/12/2014
Reference
AN2014/08
Authors
Edwin Budding; David Murphy
ISSN
2230‐5505
Central clearing of derivatives contracts is one way to reduce risk in the financial system. Since the crisis of 2008/09 there has been an international push to clear more derivatives contracts through central counterparties. This paper reviews some of the considerations facing small advanced economies, such as New Zealand.