We show whether central clearing of a particular class of derivatives lowers counterparty risk. For plausible cases, adding a central clearing counterparty (CCP) for a class of derivatives such as credit default swaps reduces netting efficiency, leading to an increase in average exposure to counterparty default. July 18, 2011, Darrell Duffie & Haoxiang Zhu
A bona fide currency functions as a medium of exchange, a store of value, and a unit of account, but bitcoin largely fails to satisfy these criteria.April, 2014, David Yermack
Blockchain or, more generally, distributed ledger technology allows to create a decentralized digital ledger of transactions and to share it among a network of computers. July 26, 2017, Katya Malinova & Andreas Park
Recent regulatory and FinTech initiatives aim to streamline post-trade infrastructures. Does faster settlement benefit markets? May 1, 2018, Mariana Khapko & Marius Zoican
We build on economic theory to discuss how blockchain technology can shape innovation and competition in digital platforms. April 20, 2019, Christian Catalini & Joshua S. Gans
How well can a cryptocurrency serve as a means of payment? We study the optimal design of cryptocurrencies and assess quantitatively how well such currencies can support bilateral trade. September 1, 2017, Jonathan Chiu & Thorsten V. Koeppl