RESEARCH · GLOBAL
Clearing in Liability Networks via Sheaves on Directed Hypergraphs
This paper introduces a novel mathematical framework using 'liability sheaves on directed hypergraphs' to model and analyze clearing in complex liability networks. It identifies clearing configurations as 'global sections' of this sheaf, providing a new theoretical tool for understanding financial settlement processes.
WHY IT MATTERS
Advanced mathematical models of financial networks can lead to more robust clearing mechanisms, reducing systemic risk and improving efficiency for central counterparties.
Source: arXiv · 2026-05-18