Similar Search Results

A Note on Central Counterparties in Repo Markets

Tomura, Hajime - Bank of Canada - 2012

The author introduces a central counterparty (CCP) into a model of a repo market. Without the CCP, there exist multiple equilibria in the model. In one of the equilibria, a repo market emerges as bond dealers and cash investors choose to arrange repos in an over-the-counter bond market. In...

Persistent link: https://www.econbiz.de/10009653923

Lessons from International Central Counterparties: Benchmarking and Analysis

Lazarow, Alexandre - Bank of Canada - 2011

Since the financial crisis, attention has focused on central counterparties (CCPs) as a solution to systemic risk for a variety of financial markets, ranging from repurchase agreements and options to swaps. However, internationally accepted standards and the academic literature have left...

Persistent link: https://www.econbiz.de/10009323064

The Impact of Operational Events on the Network Structure of the LVTS

Roberts, Tom - Bank of Canada - 2011

established. For example, the effect of a partial outage at a big six bank that has a net payment balance of $1 billion is …

Persistent link: https://www.econbiz.de/10009323065

Unanticipated Defaults and Losses in Canada's Large-Value Payments System, Revisited

Ball, Devin; Engert, Walter - Bank of Canada - 2007

Recent work at the Bank of Canada studied the impact of default in Canada's large-value payments system, and concluded that participants could readily manage their potential losses (McVanel 2005). In an extension of that work, the authors use a much larger set of daily payments data - with three...

Persistent link: https://www.econbiz.de/10005673251

The Implementation of Monetary Policy in Canada

Engert, Walter; Gravelle, Toni; Howard, Donna - Bank of Canada - 2008

The authors present a detailed discussion of the Bank of Canada's framework for the implementation of monetary policy. As background, they provide a brief overview of the financial system in Canada, including a discussion of the financial services industry and the money market. Key features of...

Persistent link: https://www.econbiz.de/10005673253

Network Analysis and Canada's Large Value Transfer System

Embree, Lana; Roberts, Tom - Bank of Canada - 2009

complex relationships and interdependencies that exist in a payment, clearing, and settlement system (PCSS), and allow an … PCSS network and describe the daily and intraday network structure of payment activity in the Large Value Transfer System …

Persistent link: https://www.econbiz.de/10008558776

What To Do about Bilateral Credit Limits in the LVTS When a Closure Is Anticipated: Risk versus Liquidity Sharing among LVTS Participants

O'Connor, Sean; Caldwell, Greg - Bank of Canada - 2008

The authors examine the effect of a trade-off between shared credit risk and liquidity efficiency, among participants in Tranche 2 of the Large Value Transfer System (LVTS T2), on their decisions to leave open, or close, their bilateral credit limits (BCLs) to a participant at risk of imminent...

Persistent link: https://www.econbiz.de/10005808265

The Effects of a Disruption in CDSX Settlement on Activity in the LVTS: A Simulation Study

Embree, Lana; Millar, Kirby - Bank of Canada - 2008

payment obligations must settle on the Bank of Canada's books, with payments made through the LVTS. CDSX settlement payments … indicate that a disruptive event could lead to a considerable amount of rejected payments and payment delays. These findings …

Persistent link: https://www.econbiz.de/10005808273

A Survey and Risk Analysis of Selected Non-Bank Retail Payments Systems

Chande, Nikil - Bank of Canada - 2008

Payment services offered by non-banks have flourished in recent years. The author provides an overview of the different …. Current players in the Canadian marketplace include electronic bill consolidators, such as epost; online payment providers … undertake a complete analysis of the market failures that may justify regulation of non-bank retail payment services, he does …

Persistent link: https://www.econbiz.de/10005808274

Liquidity Efficiency and Distribution in the LVTS: Non-Neutrality of System Changes under Network Asymmetry

O'Connor, Sean; Chapman, James; Millar, Kirby - Bank of Canada - 2008

out-payment flows. It is composed of three subgroups, in which participants within a subgroup are more strongly linked … are defined in terms of participant-specific collateral needs and out-payment delays, and result from different relative … cost structures involving collateral costs, queuing costs, and payment delay penalties. Each of the conjectural equilibria …

Persistent link: https://www.econbiz.de/10005536847