Central Counterparties Resolution—An Unresolved Problem
IMF Working Papers, March 20, 2018
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- Central Counterparties Resolution—An Unresolved Problem
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Bibliographic details
- Authors: Manmohan Singh, Dermot Turing
- Published: March 20, 2018
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484347300.001
Summary and main findings
- Recovery and resolution regimes are being developed for central counterparties (CCPs).
- The analysis examines current resolution tools in the context of policy, which is to restore the critical functions of a failed CCP.
- Conclusion: the toolkit is insufficient to avoid the costs of resolution being borne by taxpayers.
- The paper proposes alternative policy suggestions for addressing the problem of a failed CCP.
Policy analysis and implications
- Policy objective stated: restore the critical functions of a failed CCP.
- Assessment: existing recovery and resolution tools do not meet the policy objective without risking taxpayer exposure.
- Recommendation direction: propose alternative policy suggestions to better address CCP failure and limit taxpayer costs.
Content in this bundle
- Central Counterparties Resolution—An Unresolved Problem, WP/18/65, March 2018