In a DerivSource podcast, two derivatives experts review the cost of central clearing OTC derivatives contracts including connectivity, collateral (funding) and operational costs financial institutions must bear in order to meet this regulatory requirement and G20 commitment.
The panel discusses: connectivity, margin management, liquidity and operational risk and long-term implications on the market.
Prof. Craig Pirrong provides insight from his paper on “The Economics of Central Clearing: Theory & Practice” and Ed Allen of BofA Merrill will offer his insight into the costs of clearing for banks and its clearing service clients.
Speakers:
Ed Allen is director EMEA OTC Clearing at Bank of America Merrill Lynch
Craig Pirrong is the Professor of Finance, Director, Global Energy Management Institute at Bauer College of Business University of Houston
