203.

Contents Cover Page; Title Page; Copyright Page; Contents; Figures; Box; I. Introduction; 1. The Bank-Nonbank Nexus; II. CCPs: Past and Future; III. Some Loss-Allocation Choices; IV. Variation Margin Gains Haircut (VMGH); 2. A Hypothetical "Waterfall" Situtation; 3. LOLR Funds vs. VMGH; Central Bank Liquidity (when there is no uncapped VMGH); V. Conclusion; References; Footnotes

Summary 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.--Abstract

Notes "November 2014."

"Monetary and Capital Markets Department."

Bibliography Includes bibliographical references (pages 14-15)

Notes Online resource; title from pdf title page (IMF.org Web site, viewed November 13, 2014)

Subject Clearinghouses (Banking)

Lenders of last resort.

Clearinghouses (Banking) -- State supervision

Expenditures, Public.

Clearinghouses (Banking)

Expenditures, Public

Lenders of last resort

Nonbank Financial Sector.

International Financial Markets.

Lender Of Last Resort.

Burden Sharing.

United Kingdom.

Form Electronic book

Author International Monetary Fund. Monetary and Capital Markets Department, issuing body.

ISBN 9781498385381

1498385389

9781498340151

1498340156

1498322425

9781498322423

Permalink

11 results found. Sorted by relevance | date | title .