MARC Record from Library of Congress

LEADER: 02379cam a22003137a 4500
001 2005620370
003 DLC
005 20130531105858.0
007 cr |||||||||||
008 050929s2005 ilu sb f000 0 eng
010 $a 2005620370
040 $aDLC$cDLC$dDLC
050 00 $aHG2401
100 1 $aBliss, Robert R.
245 10 $aDerivatives and systemic risk$h[electronic resource] :$bnetting, collateral, and closeout /$cRobert R. Bliss, George Kaufman.
260 $a[Chicago, Ill.] :$bFederal Reserve Bank of Chicago,$c[2005]
490 1 $aWorking paper series ;$vWP-2005-03
538 $aSystem requirements: Adobe Acrobat Reader.
538 $aMode of access: World Wide Web.
500 $aTitle from PDF file as viewed on 9/29/2005.
530 $aAlso available in print.
504 $aIncludes bibliographical references.
520 3 $a"In the U.S., as in most countries with well-developed securities markets, derivative securities enjoy special protections under insolvency resolution laws. Most creditors are "stayed" from enforcing their rights while a firm is in bankruptcy. However, many derivatives contracts are exempt from these stays. Furthermore, derivatives enjoy netting and close-out, or termination, privileges which are not always available to most other creditors. The primary argument used to motivate passage of legislation granting these extraordinary protections is that derivatives markets are a major source of systemic risk in financial markets and that netting and close- out reduce this risk. To date, these assertions have not been subjected to rigorous economic scrutiny. This paper critically reexamines this hypothesis. These relationships are more complex than often perceived. We conclude that it is not clear whether netting, collateral, and/or close-out lead to reduced systemic risk, once the impact of these protections on the size and structure of the derivatives market has been taken into account"--Federal Reserve Bank of Chicago web site.
650 0 $aDerivative securities.
650 0 $aRisk management.
700 1 $aKaufman, George G.
710 2 $aFederal Reserve Bank of Chicago.$bResearch Department.
830 0 $aWorking paper series (Federal Reserve Bank of Chicago. Research Department : Online) ;$vWP-2005-03.
856 40 $uhttp://www.chicagofed.org/economic_research_and_data/wp_abstract.cfm?pubsID=711