YSI LPFMI – Webinars & Reading Material

Dear all,

We were excited about all the young scholars, who tuned in to our Liquidity Project Financial Market Infrastructure (LPFMI) Q&A webinars Mon. 29. and Wed. 31. Jul. 2019. Thank you to all of you, who participated or made use of the recordings and to our sponsoring working groups Financial Stability, Finance, Law and Economics as well as Complexity Economics!

Please find below more information and reading material on the upcoming webinars in preparation of the YSI LPFMI conference in cooperation with the Fed Chicago in Chicago, USA Sun. 27. – Wed. 30. Oct. 2019. We are going to have a prep. & debrief mini-series on central counter party clearing houses (CCP) from a public as well a private angle.

We are going to interact with two CCP experts and their specialities in order to inspire research questions on our behalf

1) Robert Steigerwald, Senior Policy Advisor at the Fed Chicago on CCP characteristics on Thu. 29. Aug. (prep.) and Tue. 3. Sep. 2019 (debrief)
2) Sunil Cutinho, President, CME Clearing and exec. board member CME Group on precedent CCP stress situations on Tue. 10. (prep.) and Fri. 13. Sep. 2019 (debrief)

All needed readings are saved on dropbox at the below address. Just inquire access via dropbox with Kiko by sending an email to [email protected]. Many of the papers below are not accessible freely – https://www.dropbox.com/home/Liquidity%20Project%20FMI/FMI_Research_%26_resources/YSI_webinar_papers We welcome you to join!

Jay Pocklington
Gerhardt „Kiko“ Kalterherberg


YSI LPFMI introduction presentation

ROBERT STEIGERWALD MINI WEBINAR SERIES – sign up at https://ysd.ineteconomics.org/project/5d3f63ee0a199f1460d98777

Discussed papers by Robert Steigerwald
1) Steigerwald, Marshall – time critical liquidity – https://www.chicagofed.org/~/media/publications/economic-perspectives/2013/2q2013-part1-marshall-steigerwald-pdf.pdf
2) Bliss, Robert, & Robert S. Steigerwald, 2006, “Derivatives Clearing and Settlement: A Comparison of Central Counterparties and Alternative Structures,” FRBC, Economic Perspectives, Vol. 30, No. 4 (4th Qtr.), available at http://www.chicagofed.org/digital_assets/publications/economic_perspectives/2006/ep_4qtr2006_part2_bliss_steigerwald.pdf

Required further reading for better understanding
3) Merton, Robert C., & Zvi Bodie, 2005, “Design of Financial Systems: Towards a Synthesis of Function and Structure,” Journal of Investment Management, Vol. 3, No. 1, pp. 1-23, available at: http://www.people.hbs.edu/rmerton/Designpaperfinal.pdf
4) 1995, Merton, Robert C. and Zvi Bodie. "A Conceptual Framework for Analyzing the Financial Environment," available at: https://www.researchgate.net/profile/Zvi_Bodie/publication/228224831_A_Conceptual_Framework_for_Analyzing_the_Financial_Environment/links/0deec51a38bb1ce588000000/A-Conceptual-Framework-for-Analyzing-the-Financial-Environment.pdf

SUNIL CUTINHO MINI WEBINAR SERIES – sign up at https://ysd.ineteconomics.org/project/5d3f6cce0a199f1460d98921

Discussed case studies
1) 2015 [b], “Central counterparties in crisis: the Hong Kong Futures Exchange in the crash of 1987,” Journal of Financial Market Infrastructures, Vol. 4, No. 2 (December), pp. 73-98, abstract available at: https://www.risk.net/journal-of-financial-market-infrastructures/2437961/central-counterparties-in-crisis-the-hong-kong-futures-exchange-in-the-crash-of-1987
2) Budding, Edwin, Robert. T. Cox, and David Murphy, 2016, “Central counterparties in crisis: International Commodities Clearing House, New Zealand Futures and Options Exchange and the Stephen Francis Affair,” Journal of Financial Market Infrastructures, Vol. 4, No. 3, pp. 65-92, abstract available at: https://www.risk.net/journal-of-financial-market-infrastructures/2449612/central-counterparties-in-crisis-international-commodities-clearing-house-new-zealand-futures-and-options-exchange-and-the-stephen-francis-affair

Required further reading for better understanding
3) Cox, Robert T., 2015 [a], “Cave quid optes: waterfalls and central counterparty capital,” Journal of Financial Market Infrastructures, Vol. 3, No. 4 (June), pp. 63-71, abstract available at: https://www.risk.net/journal-of-financial-market-infrastructures/2413557/cave-quid-optes-waterfalls-and-central-counterparty-capital
4) Budding, Edwin, & David Murphy, 2014, “Design Choices in Central Clearing: Issues Facing Small Advanced Economies,” Reserve Bank of New Zealand, Analytical Note Series No. AN2014/08 (December), available at: https://www.rbnz.govt.nz/-/media/ReserveBank/Files/Publications/Analytical%20notes/2014/an2014-08.pdf