Derivative market competition : OTC market versus organized derivative exchanges /
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| Author / Creator: | Nystedt, Jens, author. |
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| Imprint: | [Washington, D.C.] : International Monetary Fund, ©2004. |
| Description: | 1 online resource (47 pages) : illustrations. |
| Language: | English |
| Series: | IMF working paper ; WP/04/61 IMF working paper ; WP/04/61. |
| Subject: | |
| Format: | E-Resource Book |
| URL for this record: | http://pi.lib.uchicago.edu/1001/cat/bib/12497134 |
| Summary: | Recent regulatory initiatives in the United States have again raised the issue of a ''''level regulatory and supervisory playing field'''' and the degree of competition globally between over-the-counter (OTC) derivatives and organized derivative exchange (ODE) markets. This paper models some important aspects of how an ODE market interrelates with the OTC markets. It analyzes various ways in which an ODE market can respond to competition from the OTC markets and considers whether ODE markets would actually benefit from a more level playing field. Among other factors, such as different transaction costs, different abilities to mitigate credit risk play a significant role in determining the degree of competition between the two types of markets. This implies that a potentially important service ODE markets can provide OTC market participants is to extend clearing services to them. Such services would allow the OTC markets to focus more on providing less competitive contracts/innovations and instead customize its contracts to specific investors'' risk preferences and needs. |
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| Physical Description: | 1 online resource (47 pages) : illustrations. |
| Format: | Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. |
| Bibliography: | Includes bibliographical references (pages 46-47). |
| ISBN: | 1462323774 9781462323777 1452700834 9781452700830 1281331384 9781281331380 145189497X 9781451894974 9786613778789 6613778788 9781451848205 145184820X |