Rama cont and Thomas Kokholm have published a paper We study the impact of central clearing of over-the-counter (OTC)transactions on counterparty exposures in a market with OTC transactions across several asset classes with heterogeneous characteristics.

The impact of introducing a central counterparty (CCP) on expected interdealer exposure is determined by the tradeoff between multilateral netting across dealers on one hand and bilateral netting across asset classes on the other hand. Continue reading