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Applying the Central Clearing Mandate: Different Options for Different Markets
Author:
Mr. John Kiff
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https://orcid.org/0000-0002-0473-0831
,
Alessandro Gullo
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Mr. Cory Hillier
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, and
Panagiotis Papapanagiotounull

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Series:
IMF Working Papers
Volume/Issue:
Volume 2022: Issue 014
Language:
English
Publication Date:
28 Jan 2022
DOI:
https://doi.org/10.5089/9781616359232.001
ISBN:
9781616359232
ISSN:
1018-5941
Pages:
46
Keywords:
central counterparties; international over the counter derivatives markets; regulation and governance.; interest rate derivatives CCP; Non-U.S. OTC foreign exchange; OTC derivatives transaction; counter derivatives market; clearing mandate; Central counterparty clearing house; Withholding tax; Interest payments; Collateral; Tax law; Global; Africa
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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Back in 2009, G-20 leaders have called for all standardized over-the-counter (OTC) derivatives to be cleared through central counterparties (CCPs). By now, 18 of the 24 Financial Stability Board (FSB) member jurisdictions have provided for mandatory central clearing frameworks in place, covering at least 90 percent of all standardized OTC derivatives in their jurisdictions. However, the authorities in several countries remain confronted with the hows and wherefores of mandatory central clearing, also in light of the international dimension of OTC derivatives contracts. This paper examines the policy options available to countries that have yet to fully conform to the clearing mandate, centered on the setup of local CCPs or on the use of foreign CCPs, and elaborates on their feasibility, risks and benefits from an economic, legal and tax viewpoint.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 2022: Issue 014