The Economics of Central Clearing: Theory and Practice, by Dr. Craig Pirrong, University of Houston

Regulations requiring the clearing of certain OTC derivatives through central counterparties (CCPs) are causing a profound change in market structure and trading practices. This paper discusses how CCPs are structured and what effects increased use of them will have on the financial system. Craig Pirrong is Professor of Finance, and Energy Markets Director for the Global Energy Management Institute at the Bauer College of Business at the University of Houston. His research focuses on the economics of the organization of financial markets, including the economics of exchange and OTC markets, and the economics of clearing and other mechanisms for allocating counterparty credit risk. He has consulted widely with exchanges around the world, has testified before Congress on energy pricing, and has served as an expert witness in a variety of cases involving derivatives and commodities markets. He holds a Ph.D. in business economics from the University of Chicago.

Documents (1) for The Economics of Central Clearing: Theory and Practice, by Dr. Craig Pirrong, University of Houston

Response to CFTC on 24/7 Trading

ISDA, SIFMA, and SIFMA AMG jointly filed a comment letter on May 21, 2025 in response to the US Commodity Futures Trading Commission (CFTC) request for comment on 24/7 trading and clearing. Overall, the Associations believe that the feasibility of...

ISDA Publishes ISDA SIMM® Version 2.7+2412

This version of the ISDA SIMM has updates that are based only on the full recalibration of the model and marks the first ISDA SIMM version publication of the new semiannual calibration cycle in 2025. The ISDA SIMM methodology remains...

ISDA AGM Studio: José Manuel Campa, EBA

José Manuel Campa, chairperson of the European Banking Authority, speaks to Mark Gheerbrant, ISDA’s global head of risk and capital, about concerns over differences in timing and content of the Basel III reforms across jurisdictions and what can be done...