Too important to fail and Trade repository: Difference between pages

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imported>John Grout
(To add Too Important to Fail)
 
imported>Doug Williamson
(Update.)
 
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(TITF).  
(TR).


A financial firm for which the economic and or social consequences of its disorderly failure and liquidation are considered unacceptable to the society within which it operates.
An institution that is notified of and maintains electronic records of transactions.


The [[IMF]] uses the phrase "Too important to fail" (TITF)in a similar way to the phrase "[[Too big to fail]]" but with a more catch-all implication.
It is a concept developed as part of the (re-)regulation of derivatives in wake of the financial crisis early in the 21st Century in order that the authorities are better able to assess the positions and associated risks of institutions and to the financial system overall.  


== See also ==
Implementation is through the [[Dodd-Frank]] Act in the United States, the European Market Infrastructure Regulation ([[EMIR]]) in the European Union and local legislation in many parts of the world.
* [[Systemically Important Financial Institution]]
 
Provision of data to repositories is mandatory for financial insitutions and their business customers and for derivatives entered into between non-financial businesses (including internal transactions between members in the same group of companies). Partial information is likely to be misleading, of course so gathering of information was conceived as global.
 
Early indications were that the lack of detailed definition of the required systems and alowing of multiple repositories using their own would make it likely that no global information on the position of institutions would ever be made avilable to any authority. Costly, though.
 
Trade repositories initially expected to be registered by [[ESMA]] for the purposes of EMIR include  Regis-TR, CME Group, DTCC Derivative Repository, UnaVista (LSE), IntercontinetalExchange (ICE) Trade Vault, Harmony TR Connect and KDPW.
 
[[Category:Financial_risk_management]]
[[Category:Treasury_operations]]

Revision as of 07:23, 11 August 2015

(TR).

An institution that is notified of and maintains electronic records of transactions.

It is a concept developed as part of the (re-)regulation of derivatives in wake of the financial crisis early in the 21st Century in order that the authorities are better able to assess the positions and associated risks of institutions and to the financial system overall.

Implementation is through the Dodd-Frank Act in the United States, the European Market Infrastructure Regulation (EMIR) in the European Union and local legislation in many parts of the world.

Provision of data to repositories is mandatory for financial insitutions and their business customers and for derivatives entered into between non-financial businesses (including internal transactions between members in the same group of companies). Partial information is likely to be misleading, of course so gathering of information was conceived as global.

Early indications were that the lack of detailed definition of the required systems and alowing of multiple repositories using their own would make it likely that no global information on the position of institutions would ever be made avilable to any authority. Costly, though.

Trade repositories initially expected to be registered by ESMA for the purposes of EMIR include Regis-TR, CME Group, DTCC Derivative Repository, UnaVista (LSE), IntercontinetalExchange (ICE) Trade Vault, Harmony TR Connect and KDPW.