Recovery and Resolution of Central Counterparties

Matt Gibson
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Matt Gibson: Reserve Bank of Australia

RBA Bulletin (Print copy discontinued), 2013, 39-48

Abstract: The increasing importance of central counterparties (CCPs) to financial stability has prompted regulators to take steps to ensure that critical CCP services can continue in circumstances of financial distress. These steps include ensuring that CCPs have robust plans for recovery to return them to viability, and that authorities have the ability to resolve a CCP if required. This article discusses the key components that are expected to form part of CCPs’ recovery plans, including the power of a CCP to apply ‘haircuts’ to variation margin payments. The article also notes the potential elements that may form part of a resolution regime for CCPs.

Keywords: Central counterparties; financial market infrastructures; resolution; recovery (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (11)

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