Loriana Pelizzon, Director of the Financial Markets Department at the Leibniz Institute for Financial Research SAFE, has been honored with the Best Paper Award of the Review of Asset Pricing Studies (RAPS) 2025. Together with Christian Kubitza (European Central Bank) and Mila Getmansky Sherman (Isenberg School of Management, University of Massachusetts), she examined which market participants benefit or are disadvantaged by central clearing in the award-winning study “Loss Sharing in Central Clearinghouses: Winners and Losers.” The study was published in the journal The Review of Asset Pricing Studies, Volume 14, Issue 2, 2024.
The empirical analysis shows that current rules disproportionately benefit market participants with flat portfolios. Alternative loss sharing rules can address cross-sectional disparities in clearing benefits but CCPs may favor current rules to maximize fee income. The study thus provides important insights for the assessment of systemic risks in market infrastructures.
Award presented at international conference
The award was presented at the SFS Cavalcade North America 2025 conference on finance. The conference is organized by the journals The Review of Financial Studies, Review of Corporate Finance Studies and Review of Asset Pricing Studies.
Mila Getmansky Sherman accepted the award on behalf of the conference.
