Clearing and Settlement During the Crash

@article{Bernanke1990ClearingAS,
  title={Clearing and Settlement During the Crash},
  author={Ben Bernanke},
  journal={Review of Financial Studies},
  year={1990},
  volume={3},
  pages={133-151}
}
  • B. Bernanke
  • Published 1990
  • Economics
  • Review of Financial Studies
This article is a reexamination of the clearing and settlement process in financial markets (particularly the futures market) and its performance during the 1987 stock market crash. It provides both some institutional background and some conceptual perspective on the problems faced by the system during the week of October 19. Much of the discussion is based on the useful analogies that can be drawn between the clearinghouse and other financial intermediaries, such as banks and insurance… 
Lessons from Financial Crises: The Role of Clearinghouses
This article investigates the historical development of clearinghouses and their ability to deal with financial crises. The article first reviews the role of bank clearinghouses in the Panic of 1907,
The Failure of a Clearinghouse: Empirical Evidence
We provide the first empirical description of the failure of a derivatives clearinghouse. We use novel, hand-collected, archive data to study risk management incentives by the Paris commodity futures
Competition in the Clearing and Settlement Industry
This article empirically analyzes the competitive landscape within the clearing and settlement industry. Using the panel data of 46 clearing and settlement institutions from 23 countries we confirm
A Model of Interbank Settlement
A settlement system is a set of rules and procedures that govern when and how funds are transferred between banks. Perhaps the most crucial feature of a settlement system is the frequency with which
Settlement Delays in the Money Market
We track 38,000 money market trades from execution to delivery and return, and provide a first empirical analysis of settlement delays in financial markets. In accord with the predictions of recent
Competition in the Clearing and Settlement Industry
This article empirically analyzes the competitive landscape within the clearing and settlement industry. Using panel data for 46 clearing and settlement institutions from 23 countries, we confirm
The Crash of 1882 and the Bailout of the Paris Bourse
The crash of the French stock market in 1882 presented the Paris Bourse with its worst crisis of the nineteenth century. Its structure was similar in key respects to today’s futures markets, with a
The Failure of a Clearinghouse: Empirical Evidence
We provide the first detailed empirical analysis of the failure of a derivatives clearinghouse: the Caisse de Liquidation, which defaulted in Paris in 1974. Using archival data, we find three main
Counterparty Risk and the Establishment of the New York Stock Exchange Clearinghouse
We examine the effect of the establishment of the New York Stock Exchange (NYSE) clearinghouse in 1892 on counterparty risk using a novel historical experiment. During this period, the NYSE stocks
Counterparty Risk and the Establishment of the New York Stock Exchange Clearinghouse
Heightened counterparty risk during the recent financial crisis has raised questions about the role clearinghouses play in global financial stability. Empirical identification of the effect of
...
1
2
3
4
5
...

References

SHOWING 1-9 OF 9 REFERENCES
Distinguished Lecture on Economics in Government: Central Banking and Systemic Risks in Capital Markets
On several occasions since 1970, the Federal Reserve has intervened to help prevent or delay the failure of a large individual commercial bank. It has typically not played a similar role with respect
The Day the Nation’s Cash Pipeline Almost Burst,
  • 1988
How the Stock Market Almost Disintegrated a Day after the Crash,
  • 1987
Clearance, Payment, and Settlement Systems in the Futures, Options, and Stock Markets,
  • Board of Trade Clearing Corporation,
  • 1989
Margin requirements on equity instruments
Payment-System Glitch Complicated Stock Crash,
  • 1988
Fed’s New Chairman Wins a Lot of Praise for Handling the Crash,
  • The Wall Street Journal,
  • 1987
The clearing association in futures markets: Guarantor and regulator
Margins and futures contracts