Got to be certain: The legal framework for CCP default management processes
Jo Braithwaite () and
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Jo Braithwaite: London School of Economics
No 37, Bank of England Financial Stability Papers from Bank of England
Central clearing offers numerous benefits to financial stability including multilateral netting of cleared exposures and the centralisation of default management. These benefits explain the pivotal role of central counterparties (‘CCPs’) in the post-crisis derivatives market reforms. However they lead to a key financial stability question: will CCPs be able to manage a large member default effectively?
Keywords: CCP; Resolution; CCP resolution; No creditor worse off; NCWO counterfactual (search for similar items in EconPapers)
JEL-codes: K23 (search for similar items in EconPapers)
Pages: 37 pages
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Persistent link: https://EconPapers.repec.org/RePEc:boe:finsta:0037
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