Search: OTC
RBA Glossary definition for OTC
OTC – over-the-counter
Search Results
Central Counterparty Loss Allocation and Transmission of Financial Stress
18 Mar 2015
RDP
2015-02
Among the reforms to over-the-counter (OTC) derivative markets since the global financial crisis is a commitment to collateralise counterparty exposures and to clear standardised contracts via central counterparties (CCPs). ... First, rather than using
https://www.rba.gov.au/publications/rdp/2015/2015-02.html
Data and Exposure Analysis
29 Sep 2015
RDP
2015-02
Of the 41 banks, 16 are widely recognised as forming the ‘core’ of the OTC derivative markets. ... The matrix of bilateral gross notional OTC derivative positions for product-class k is denoted G.
https://www.rba.gov.au/publications/rdp/2015/2015-02/data-exposure-analysis.html
Introduction
11 Sep 2015
RDP
2015-02
An important step towards meeting this objective is the 2009 commitment by G20 Leaders that ‘all standardized OTC derivative contracts should be … cleared through central counterparties [CCPs]’ (G20 2009). ... The resulting increase in the
https://www.rba.gov.au/publications/rdp/2015/2015-02/introduction.html
Policy Implications
29 Sep 2015
RDP
2015-02
5.1 Liquidity and Solvency Stress – the Trade-off. Using actual data on banks' OTC derivatives positions, the analysis in this paper confirms the finding in Heath et al (2013) that ... It can also lower the collateral requirements associated with banks'
https://www.rba.gov.au/publications/rdp/2015/2015-02/policy-implications.html
References
11 Sep 2015
RDP
2015-02
MAGD (Macroeconomic Assessment Group on Derivatives) (2013),. Macroeconomic Impact Assessment of OTC Derivatives Regulatory Reforms. , ... Sidanius C and F Zikes (2012), ‘OTC Derivatives Reform and Collateral Demand Impact’, Bank of England Financial
https://www.rba.gov.au/publications/rdp/2015/2015-02/references.html
Conclusions
11 Sep 2015
RDP
2015-02
further the implications for the stability of the financial network of introducing central clearing and collateralisation of OTC derivatives trades. ... Finally, the analysis in this paper has taken banks' OTC derivative positions, liquidity holdings and
https://www.rba.gov.au/publications/rdp/2015/2015-02/conclusions.html
Background and Relevant Literature
11 Sep 2015
RDP
2015-02
The G20-led international initiative to expand the scope of CCP clearing to OTC derivative markets added impetus to these efforts (G20 2009). ... The expansion of CCP clearing to OTC derivative markets, and margining of non-centrally cleared derivative
https://www.rba.gov.au/publications/rdp/2015/2015-02/background-relevant-literature.html
Contagion Analysis
29 Sep 2015
RDP
2015-02
This is equivalent to assuming that OTC derivative positions are not speculative, but rather are entered into to hedge other balance sheet exposures.
https://www.rba.gov.au/publications/rdp/2015/2015-02/contagion-analysis.html