Description |
1 online resource (25 pages) : illustrations |
Series |
IMF working paper, 1018-5941 ; WP/15/21 |
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IMF working paper ; WP/15/21.
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Contents |
Cover; Abstract; Contents; I. Introduction; II. Benefits and Costs of Central Clearing; III. Interconnectedness of Central Counterparties; Tables; 1. Benefits and Costs of CCPs; Figure 1. Possible Contagion Channels in a CCP's Ecosystem; Box 1. The CCP Risk Waterfall; 2. Size of Markets and Activity of CCPs, 2013; IV. Are the Current Measures Sufficient?; 3. Governance Structures of Largest CCPs Worldwide; 4. Current Measures to Reduce the Probability and Impact of a CCP's Failure; V. Additional Measures; 5. Proposed Measures to Reduce Systemic Risks; VI. Conclusions; References |
Summary |
Central counterparties (CCPs) can offer significant benefits to a market. However, CCPs are also highly interconnected with financial institutions and markets and therefore too important to fail. The increased volumes cleared through CCPs and their increasing global scope, in particular in the OTC derivatives market, make it even more important that systemic risks related to CCPs are managed. This paper argues that the current set of international policy measures does partly address these risks, but that alternative policy measures are needed to reduce remaining systemic risks. For example, the paper recommends network analysis to be conducted by CCPs and authorities to gauge potential losses and suggests a common international approach to central bank services to help reduce the dependency of CCPs on services provided by commercial banks. --Abstract |
Notes |
"January 2015." |
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"Monetary and Capital Markets." |
Bibliography |
Includes bibliographical references (pages 23-24) |
Notes |
Online resource; title from pdf title page (IMF.org Web site, viewed January 29, 2015) |
Subject |
Clearinghouses (Banking)
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International clearing.
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Financial institutions, International.
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Over-the-counter markets.
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Financial risk management.
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Crisis management -- Economic aspects
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International economic relations.
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Clearinghouses (Banking) -- State supervision
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Clearinghouses (Banking)
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Financial institutions, International
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Financial risk management
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International clearing
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International economic relations
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Over-the-counter markets
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Form |
Electronic book
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Author |
International Monetary Fund. Monetary and Capital Markets Department.
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ISBN |
147557293X |
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9781475572933 |
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9781498322058 |
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1498322050 |
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