02859nam a22004691i 4500 000706594 CaToSAGE 20240202172226.0 20230109140345.7 m o d cr un||||||||| 230109s2020 enk fo 000 0 eng d NEZPRACOVANÝ IMPORT 9781529619713 : No price (ebook) (OCoLC)1362530631 CaToSAGE eng rda pn CaToSAGE UtOrBLW a ii HG5732 .V37 2020 332.6730954 Varma, J. R. (Jayanth R.), author. Prime broking default at the national stock exchange / Jayanth Varma and Sobhesh Kumar Agarwalla. London : Indian Institute of Management, Ahmedabad, 2020. 1 online resource. text txt rdacontent computer c rdamedia online resource cr rdacarrier SAGE business cases The case describes a puzzling situation where a member default caused significant losses to National Securities Clearing Corporation Limited (NSCCL), the central counterparty (CCP) of India's largest equity derivatives exchange, although there was no significant movement in the relevant market prices. It highlights the risks arising from collateral, liquidity, and concentration, even when the market risk environment is benign. The case shows how market participants can use a combination of exchange-traded options to replicate financial transactions beyond the typical remit of a CCP. For example, these synthetic structures can blur the line between providing a settlement guarantee, which is the core function of a CCP, and giving credit enhancement to a loan against shares, which is outside the purview of a CCP. The wrong-way risk may crop up unexpectedly unless the CCP is continuously on its guard. The case also illustrates the issues of operational risk in the default management process. All the mathematical models used for managing market risk may function flawlessly, and yet, the CCP can be exposed to substantial losses. The only consolation for NSCCL was that its default funds were large enough to absorb this loss, without affecting market confidence in the CCP. Description based on XML content. elektronické knihy fd186907 czenas electronic books eczenas Stock exchanges India Case studies. Risk management Case studies. Investments Case studies. Agarwalla, Sobhesh Kumar, author. SAGE business cases. SAGE Knowledge https://sk.sagepub.com/cases/prime-broking-default-at-the-national-stock-exchange Plný text SBC EB NEPOSILAT EB