A Study On Risks And Prudential Regulation Of OTC Central Counterparties Clearing

As a transaction settlement mechanism,Central Counter Party(CCP)has incomparable advantages in improving the efficiency and transparency of the OTC derivatives market transactions.Clearing members only need to deal with credit risk towards to the CCP,not the potential credit risk from different counterparties.CCP system has been paid great attention in the financial market after Subprime Mortgage Crisis.CCP also has its flaws as a market measures to correct their own regulatory loopholes.Therefore,under the background of economic globalization,t he research of studying how to monitor the risk of CCP becomes more important.This thesis analyzes the CCP clearing facility,at the same time,studied the CCP risk regulatory measures under the outbound OTC derivatives markets,this thesis also analysis that how the CCP in the OTC derivatives market to design the risk regulatory mechanism,at last,this thesis puts forward some suggestions for the establishment of CCP in China.Chapter one is an overview on OTC derivative market,including OTC derivatives as the root causes of the financial crisis,the nature of its transactions and risk sources,in order to illustrate the necessity to adopt CCP mechanism;Chapter two declared the history of CCP model,then introduced the CCP operating mechanism emphatically,analyzed under the perspective of the Novation and Multilateral Netting,How the CCP clearing system in the OTC derivatives market control risks,to clarify the legal status of CCP mechanism operation and legal nature;The third Chapter analyses the role of CCP clearing system,on the one hand,the CCP clearing system is an irreplaceable role in the OTC derivatives market,CCP has the incomparable advantage at control risk,including ensure the performance of the market members and improve liquidity and activity of the market;on the other hand,the risk of centralized mechanism also bring new risks for the market,whether it is a systemic risk or a inherent moral hazard,it brings a huge test for the entire derivatives market;Chapter four mainly puts forward some suggestions on how to supervise the CCP from the perspective of risks.First of all,this chapter analyzed the regulator in charge of Market Access of the derivative products and members from the perspective of market access mechanism,thus,the central healthy operation of clearing market;secondly,in terms of continuous prudential regulation,this chapter introduced that through the establishment of the corresponding mechanism to ensure the balance of regulatory costs and central clearing market efficiency;again,from the perspective of internal governance,the fourth chapter expounds the diverse by promoting policy makers as well as the diversity of the decision-making process to achieve a mutual restriction of management mechanism;finally,after elaborates the settlement mechanism,this chapter try to puts forward some views on the establishment and perfection of China CCP system.