The Law and Regulation of Central Counterparties
Author(s): Jiabin Huang
The Law and Regulation of Central Counterparties provides a detailed analysis of the legal and regulatory aspects of Central Counterparties (CCPs) with an introduction to their role and functions in modern financial markets. The book begins by describing in detail basic elements of modern post-trade infrastructure, exploring the modern functional and operational aspects of CCPs in the markets. It moves on to discuss the relationships between CCPs and their members, and clients of clearing members as non-members, legal issues concerning collateralisation, netting and set-off, and default arrangements that are primarily embedded in the form of the rules and regulations of CCPs. With regard to regulatory issues, the book examines the regulatory framework with reference to the UK and the EU. As to the case for a single CCP for various different types of markets, the analysis covers the advantages and disadvantages of CCP clearing and carries out an assessment of the risks and benefits of a single multi-market CCP.
Review(s):
“Dr. Huang's book is the first legal scholarly work which covers all the main issues in one place. This landmark piece of work comes at a time when CCPs have become a hot topic for debate and have caught the attention of policy-makers around the globe as a mechanism for reducing risk in the international financial markets.
His work strikes a delicate balance between the legal aspects of the CCP system both in theory and practice, thereby serving as a useful manual for practicing lawyers, policy-makers and academics interested in this increasingly important field...it transcends boundaries and can be used as a manual for CCPs by lawyers, regulators ad policy-makers in any jurisdiction.
...this book is well-written...and the concepts are easy to grasp for anyone who is initiated in clearing and settlement systems. The book is accessible to anyone familiar with commercial, banking or financial law. It will remain a classic piece of work that will be remembered as the first of its kind. It could not have been published at a more opportune time, and it contains years of scholarly research that will be of great aid to regulators and public policy-makers in the years to follow.” —Banking and Finance Law Review, Volume 27:3
ISBN: 9781849460514