Series: IMF Working Papers
Author(s): Froukelien Wendt
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 27 January 2015
Keywords: central counterparties, interdependencies, too important to fail, recovery and resolution, risk waterfall, markets, market, default, liquidity, Government Policy and Regulation
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 volu...