The financial crisis of 2007-2009 exposed the weaknesses of the global over-the-counter (OTC)
derivatives market such as limited transparency regarding risk exposures poor counterparty
risk management practices and the risk of contagion arising from interconnectedness in this
market. In the aftermath of the financial crisis regulators introduced worldwide legislative
and regulatory changes aimed at increasing the transparency and stability of the financial
markets. In this book Dr. Olga Lewandowska explores those novel regulatory solutions and their
impact. The main focus is on central counterparty (CCP) clearing that became mandatory for OTC
derivatives under the new regulatory paradigm. In four research papers she analyzes CCP from
different risk perspectives and based on four diverse research methods. Her book offers a
comprehensive assessment of the risk-reduction potential of the CCPs their implications for
the financial markets and the practical challenges in the implementation of the recent
financial market reforms.
