| Since the 80 s of 20 th century, the rapid development of over the counter derivatives(otc-d) have gained great attention of the world, and have became an important power to promote finance innovation, the essence of the development is a reaction to the globalization of the economy and the liberalization of financing. Specifically, the termination of Bretton Woods System amplified the exchange risk and interest risk, which influenced the real economy heavily. In order to manage the related risk efficiently, otc-d were created and became an important risk management tool of international banks, financial institutions, governments and trans-national corporations. As the credit derivatives especially single-name and indexes credit default swap created and developed rapidly at 90 s of 20 th century, the influence of otc-d to the financial system and innovation entered a new era. the core of the credit otc-d is transferring credit risk of financial instruments artificially, just open the Pandora's box of securitization and re-securitization, and stimulate the credit inflation and assets bubbles, finally incurred serious losses to commercial banks, investment banks, institutional investors in the process of deleveraging, even lead to bankruptcy.About 15 years Before the financial crisis, the residential mortgage loan originating institutions accelerate the retrieve circle of long term residential mortgage loan, and enlarge the aggregate credit amount of residential mortgage loan. more and more America families bought theirs' own household by mortgage loan. At the same time, the institution that originating residential mortgage backed securities gained a lot of revenues, so more and more private banks such Citibank and JP Morgan chase entered this market, then the percents of sub-prime mortgage loan increased gradually, which meaned that banks had to suffer more risk that the borrower could not repay the principal and interests of the loan. by the development of credit derivatives, the traditional “originate and hold” business model of banks had replaced by “originate and distribute” model, the direct purpose of originating residential mortgage loan was to sell the mortgage loan to an special purpose vehicles that created or sponsored by originating bank, though the special purpose vehicles were legally separated from originating banks. By “originate and distribute” model, banks could gain the revenues of securitization, and retrieve the loans quickly, so amplify the credit amount. As the securities created by securitization could get a high credit rating grade by rating agency, under the Basel?, compared with holding mortgage loan, banks could mitigate the regulatory capital requirement by holding these securities, so the capital cost mitigated. When leman Brothers collapsed during crisis, America government had to bail out other huge financial institutions, but the taxpayer suffered the losses finally.The causes of the crisis is complex, but the otc-d's rapidly development, the natural huge counterparty risk and the failure of supervision were main reason undoubtedly. After the crisis, the reformation of otc-d supervision had become the core element of international and national financial supervision reformation, and the mandatory central clearing has become the core segment of otc-d supervision reformation.Central clearing has a long history which is a necessary financial market infrastructure, the core factor of the regime is to implement rigorous membership qualification control, margin requirement, default fund depository and mutual loss allocation arrangement, the core function is to mitigate counterparty risk. at the same time, be sure that if any clearing member default, central counterparty can absorb the losses, and avoid any single clearing member's default which may incurring risk contagion and system risk. Crisis also testified that during the crisis, all the otc-d cleared by central counterparty were well managed, but for the otc-d that not central cleared were out of controlling quickly and became an important cause of the crisis.So As to China, the depth and width of financial system has a long distance to developed countries. for the otc-d, interbank market financial derivatives master protocol and related credit support documents were published since 2007,which meaned that the development of China otc-d has become normally, standardly and internationally. At 2009, Shanghai interbank market clearinghouse established, which is an important financial infrastructure to promote central clearing. At july 2014, China mandated to central clearing interest swap, which is a key step in implementing otc-d central clearing. Compared to developed countries, not only the otc-d market of China is small and has limited product type, but also the limited establishment of the supervision system, just located the elementary phase of the otc-d market entirely. So based on the reality of China, learn the lessons and experiences of the otc-d supeivision of developed countries, especially the development of mandatory central clearing of America and European union after crisis, not only can elevate the counterparty risk management of otc-d of China, but also be beneficial to build an robust foundation of the whole otc-d market, even benefit the efficiency and effective of the whole financial system.The article includes 6 chapters, chapter 1 illuminates the basic questions of otc-d central clearing, which was divided into 3 sections. first, introduced the definition, classification, function and the market structure of otc-d; second, mainly analyzed the relationship between the crisis and otc-d, based on it, the article depicted that the counterparty risk is the key factor that incurred the crisis; finally, introduced the specific situation that international organization and main developed countries that in promoting otc-d central clearing.And illuminates the theory basis of central clearing and the implementing pathway.adequately introduced the definition, advantage and the main risk management regime of central clearing; and analyzed the benefits of central clearing to mitigate otc-d's counterparty risk, at the same time, analyzed the limitation of central clearing objectively, though central clearing is an effective manner to mitigate counterparty, it can't cover all the risk, central clearing can creates a series of new risks, such as the possibility of central counterparty to become a new “too big to fail” financial institution.Chapter 2 rexpounds the central counterparty clearing over-the-counter derivatives of structural analysis and function evaluation and theoretical basis. Under three section, first, introduces in detail the advantages of the central clearing and risk management of the main system arrangement; Second, analyzed the central clearing of reduces the important value of otc derivatives counterparty risk, at the same time, the objective analysis of the limitations of the centrally cleared otc derivatives that although central clearing is to solve the otc derivatives counterparty risk, however, it does not cover all of its counterparty risk, and the central clearing itself also will produce a series of new risks, such as central opponent itself becomes the new too-big-to-fail financial institutions risk. Finally, from the perspective of risk society theory, this paper analyzes the financial innovation after new financial risks, and otc derivatives central counterparty clearing risk types, based on this, advances the otc derivatives central counterparty clearing mechanism path selection. The below. Think should be from the object of regulation at the same time, self regulation and regulation as well as the field of the main four dimensions simultaneously, to ensure the integrity and effectiveness of the reform.Chapter 3 illuminates the object regulation that to clarify the qualified otc-d central clearing standard, which was divided into 3 sections. first, analyzed the general standard that to determine whether a specific type of otc-d should be central cleared, spontaneous, outlined the general process of implementing such standard; Second, depicted and estimated the legislation of US and EU's correspondent standard and implementing status; finally, introduced the standard of China and implementing status, based on the causes analysis, then tendered some suggestions to furnish the standard.Chapter 4 illuminates the self-regulation of central counterparty that concerning the risk management of central counterparty, which was divided into 5 sections. first separately analyzed the optimal number of central counterparty, clearing membership qualification standard, loss recovery planning and central bank bailout, which to resolve the efficiency, equality, robustness and safe of otc-d central clearing correspondently. Finally, introduced the reality of central counterparty risk management of China, by comparing with developed countries' experiences, providing some recommendation to elevate China's central counterparty risk management.Chapter 5 illuminates the subject regulation that to clarify how to enhance the regulatory capital requirement of banks which are the most important participants of otc-d markets, this chapter is divided into 5 sections. first, analyzed the radical importance of regulatory capital requirement for banks; second, introduced the establisement, nature and evolution of Basel frameworks which is the most important standard of bank regulation in the world; third, mainly analyzed the main shortcomings of Basel? and the adjustment after the crisis; fourth, specifically depicted the faults of regulatory capital requirement of counterparty risk of otc-d of Basel? and the correspondent enhancement of Basel?; fifth, introduced the implementation of Basel? by US and EU, then analyzed the related reasons; finally, introduced China's implementing situation of Basel?'s otc-d counterparty risk capital requirement, based on the causes analysis, to provide some enhance suggestions.Chapter 6 illuminates the scale regulation that to integrate the regulation of cross border otc-d between different countries, which was divided into 6 sections. First, analyzed the essentiality of cross border regulation integration; second, introduced the main integration manners and the relationship between different manners; third, depicted the situation that how America otc-d regulatory authority to implement cross border regulation and stockholder's reaction, then analyzed the causes; fourth, mainly illuminates America Commodity trade and future commission's final rule about cross border otc-d regulation integration; fifth, introduced the implementing situation; finally, depicted the situation of China's cross border otc-d regulation, based on the causes analysis, then provide some advices to promote further development.At last, made a conclusion, insisted on that otc-d is a very important risk management tool in modern financial system, and central clearing is a core regime to mitigate otc-d's lethal counterparty risk, thought its benefit is limited. At the same time, the central clearing regime reformation should be implemented in a comprehensive way, the experiences and lessons of US and EU is valuable for China otc-d central clearing regulation reformation, which should be highlighted and absorbed, so that to build a robust and efficient otc-d central clearing regime, and establish a key supporting regime for China otc-d market even the entire financial system's innovation and sustainable development. |
PDF Full Text Request