Codex · No. 1 · Companion
A Reader's Companion to Derivatives Clearing
Derivatives Clearing: A Comprehensive Guide — Risk Management, Regulation, and the Future of the Markets
Derivatives Clearing: A Comprehensive Guide is a practical account of how cleared derivatives actually work — from execution, through the CCP, to settlement, written from the clearing broker's seat rather than the CCP's or the quant's. This page is its companion: the map of the machinery, the working sequences, and the things that change after a book is printed.
You do not need the book to read it. The map below is an outline of how clearing is put together, and the path after it is the sequence every client goes through before a first cleared trade. What is in each chapter, the twenty-six columns and the reader's compass are on the book page.
The MapHow clearing is put together
From the moment a trade is struck to the day the market is tested. Clearing is these five stages. The chapter on each line is where the book takes it up.
The PathFrom first contact to first cleared trade
Chapter 6 sets out onboarding as it is actually run. Six steps, in this order.
- 1Information gathering and initial assessment
- 2Internal approval and risk assessment
- 3Contract execution — documentation and legal negotiation
- 4Account opening and system setup
- 5Test trading and training
- 6Final check and go-live
The agreements
- Customer Agreement
- Clearing Addendum — the FIA-ISDA Cleared Derivatives Addendum
- Risk Disclosure Document
The chapter runs each of these by client type — pension funds, investment trusts, hedge funds, banks — with the segregation model that goes with them.
Questions it answers
- Where does the funding impact of IM and VM land, and who manages it?
- Where does collateral optimization break down — eligibility, haircuts, or reinvestment?
- How do LSOC, ISA and the JSCC segregation model trade protection against efficiency?
- In a default, in what order do the waterfall, the auction and portability actually move?
- How do the clearing mandate, reporting, UMR and the PFMI change what a desk does?
- What has to hold for clearing certainty on a SEF or an MTF?
Read it firstThe Introduction and Chapter 1, in full
The Introduction and Chapter 1 are open to read in full — what a CCP does, what novation and netting change, and where margin comes from. That is the whole of the fundamentals, before you decide whether to buy the rest. The publisher's reader carries the first 122 pages of the book; the same material is posted on SSRN as a 138-page working paper, with a citable abstract page.
The Book
Kindle edition — USD 29.99
Pre-orders are delivered on 14 September 2026. The paperback follows from 21 September 2026, at the same price; its page opens on that date.
507 pages · 31 tables · over 90 figures · a glossary of more than two hundred terms · an index in the print edition.
The Japanese edition, published in February 2026, reached #1 in two Amazon.co.jp bestseller categories and #1 New Release in four more.
Corrections and updates
A book is finished the day it goes to print. Clearing is not. Corrections, and the developments that arrive after publication, will be posted here.
Written by Shun Yanagisawa — Director, Head of Futures, Clearing and FX Prime Brokerage, Markets Sales at Citigroup Global Markets Japan Inc., a Representative Director and Vice President of FIA Japan. Full biography on the book page →