The calculation of clearing rates - the proportion of contracts cleared through CCPs - may seem straightforward, but several complications arise. One fundamental issue relates to whether to use trading activity or outstanding contracts (ie flow or stock data). Clearing rates based on trading activity, such as turnover, can better capture the degree of clearing of current contracts. However, such data overweigh short-term contracts, which are turned over more frequently. For the CDS market, the BIS covers only outstanding contracts. ...


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