Central Counterparties Resolution—An Unresolved Problem

Manmohan Singh and Dermot Turing

No 2018/065, IMF Working Papers from International Monetary Fund

Abstract: Recovery and resolution regimes are being developed for central counterparties (CCPs). We analyse current resolution tools in the context of policy, which is to restore the critical functions of a failed CCP. We conclude that the toolkit is insufficient to avoid the costs of resolution being borne by taxpayers, and propose alternative policy suggestions for addressing the problem of a failed CCP.

Keywords: WP; risk model; CCP resolution; reserves policy; parent company; CCP default; CCP resolution and recovery; VMGH; collateral; NCWO; FSB; ISDA; waterfall resource; variation margin; bridge CCP; CCP difficulty; CCP failure; transferee CCP; CCP market; Central counterparty clearing house; Bank resolution framework; Crisis resolution; Bank resolution; Europe; Global (search for similar items in EconPapers)
Pages: 23
Date: 2018-03-20
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Citations: View citations in EconPapers (7)

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