Research Discussion Paper – RDP 2016-07 The Efficiency of Central Clearing: A Segmented Markets Approach

Contents

• Introduction
• Background
• The Model
• Results
• Conclusion and Discussion
• Appendix A: Trader Behaviour and Solution Method
• Appendix B: Solving the Constrained-efficient Problem
• References

We would like to thank Anthony Brassil, Pedro Gomis-Porqueras, Chris Edmond, Shuyun May Li, Mark Manning, Bruce Preston, John Simon and seminar participants at Monash University and the University of Melbourne for comments and helpful suggestions. The views expressed in this working paper are those of the authors and do not necessarily reflect the views of the Reserve Bank of Australia or the University of Melbourne. The authors are solely responsible for any errors.