Format:
Online-Ressource (16 p)
Edition:
Online-Ausg.
ISBN:
1498322425
,
9781498322423
Series Statement:
IMF Working Papers Working Paper No. 14/203
Content:
Nonbanks such as central counterparties (CCPs) are a useful lens to see how regulators view the role of the lender-of-last-resort (LOLR). This paper explores the avenues available when a nonbank failure is likely, specifically by considering the options of keeping CCPs afloat. It is argued that CCPs have, by regulatory fiat, become “too important to fail,” and thus the imperative should be greater loss-sharing by all participants that better align the distribution of risks and rewards of CCPs, the clearing members and derivative end-users. In the context of LOLR, the proposed variation margin gains haircut (VMGH) is discussed as a way of limiting the taxpayer put
Additional Edition:
Erscheint auch als Druck-Ausgabe Singh, Manmohan Limiting Taxpayer "Puts" - An Example from Central Counterparties Washington, D.C. : International Monetary Fund, 2014 ISBN 9781498322423
Language:
English
DOI:
10.5089/9781498322423.001
