I just came across the blog Deus Ex Macchiato, because its (anonymous) author kindly linked to a couple of my posts. I took some time going through the blog, and was quite impressed. It’s very much worth following if you are interested in banking, finance, derivatives, and market infrastructure related issues. I only wish I knew of it earlier.
DEM is a clearing skeptic–one of a select breed. The post that attracted my attention lists 10 misconceptions about CCPs. Spot on. There are many more, but the ones DEM lists are important indeed.
I consider the name of the blog somewhat ironic, given that I’ve frequently referred to CCPs as deus ex machina, that will descend from the heavens to solve all our systemic risk problems.
A couple of notes to DEM, if you stumble across this:
- I’ve written a lot more about clearing on SWP and elsewhere than the couple of things you link to, if you’re interested. I’ve also written working papers that I’d be glad to point you to.
- I know you’re anonymous, but I’d be interested in sharing thoughts more directly. You can get in touch with me at firstname.lastname@example.org if that’s of interest to you. Glad to do it in strict confidence. Use a pseudonymous email address if that’s more to your liking.