Nikil Chande - Bank Publications

• Three things we learned about the Lynx payment system

  Staff Analytical Note 2023-14 Nikil Chande, Zhentong Lu, Hiru Rodrigo, Phoebe Tian

  Canada transitioned to a new wholesale payment system, Lynx, in August 2021. Lynx is based on a real-time settlement model that eliminates credit risk in the system. This model can require more liquidity; however, Lynx’s design allows Canada’s wholesale payments to settle efficiently.

  Content Type(s): Staff research, Staff analytical notes Topic(s): Financial institutions, Financial services, Financial system regulation and policies, Payment clearing and settlement systems JEL Code(s): C, C1, C10, E, E4, E42, G, G2, G28

• The Cyber Incident Landscape

  Staff Analytical Note 2019-32 Nikil Chande, Dennis Yanchus

  The Canadian financial system is vulnerable to cyber threats. But for many firms, cyber risk is difficult to quantify. We examine public information on past cyber incidents to better understand the current risk landscape and find that a holistic view is needed to fully grasp the nature of this risk.

  Content Type(s): Staff research, Staff analytical notes Topic(s): Financial markets, Financial stability JEL Code(s): G, G2, G28, M, M1, M15, O, O3, O33, O38
• June 7, 2018

  Establishing a Resolution Regime for Canada’s Financial Market Infrastructures

  Financial System Review - June 2018 Elizabeth Woodman, Lucia Chung, Nikil Chande

  This report highlights how an effective resolution regime promotes financial stability. It does this by ensuring that financial market infrastructures (FMIs) would be able to continue to provide their critical functions during a period of stress when an FMI’s own recovery measures were failing. The report explains the Bank of Canada’s new role as the resolution authority for FMIs, which will further bolster financial system resilience.

  Content Type(s): Publications, Financial System Review articles Topic(s): Financial institutions, Financial markets, Financial stability, Financial system regulation and policies, Payment clearing and settlement systems JEL Code(s): G, G1, G10, G19, G2, G20, G28, G29

• Using Speed and Credit Limits to Address the Procyclicality of Initial Margin at Central Counterparties

  Staff Discussion Paper 2016-18 Nikil Chande, Nicholas Labelle

  This paper proposes a practical approach to address the procyclicality of initial margin at central counterparties (CCPs) that can work even in periods of extreme stress. The approach allows CCPs to limit the speed of margin increases resulting from spikes in market volatility.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Financial markets, Financial stability, Financial system regulation and policies, Payment clearing and settlement systems JEL Code(s): G, G1, G18
• December 10, 2013

  Margining for Non-Centrally Cleared Over-the-Counter Derivatives

  Financial System Review - December 2013 Nikil Chande, Stéphane Lavoie, Thomas Thorn

  Content Type(s): Publications, Financial System Review articles
• December 6, 2012

  The Canadian Approach to Central Clearing for Over-the-Counter Derivatives

  Financial System Review - December 2012 Nikil Chande, Jean-Philippe Dion, Darcey McVanel, Joshua Slive

  Content Type(s): Publications, Financial System Review articles
• December 9, 2010

  Central Counterparties and Systemic Risk

  Financial System Review - December 2010 Eric Tuer, Nicholas Labelle, Nikil Chande

  Content Type(s): Publications, Financial System Review articles

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

  Staff Discussion Paper 2008-17 Nikil Chande

  Payment services offered by non-banks have flourished in recent years. The author provides an overview of the different kinds of non-bank retail payments schemes currently available in Canada, illustrating each by focusing on a specific example.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Financial services, Payment clearing and settlement systems JEL Code(s): D, D1, D14, G, G2, G20
• December 21, 2006

  Credit in a Tiered Payments System

  Financial System Review - December 2006 Alexandra Lai, Nikil Chande, Sean O'Connor

  Content Type(s): Publications, Financial System Review articles

• Credit in a Tiered Payments System

  Staff Working Paper 2006-36 Alexandra Lai, Nikil Chande, Sean O'Connor

  Payments systems are typically characterized by some degree of tiering, with upstream firms (clearing agents) providing settlement accounts to downstream institutions that wish to clear and settle payments indirectly in these systems (indirect clearers).

  Content Type(s): Staff research, Staff working papers Topic(s): Financial institutions, Financial services, Market structure and pricing, Payment clearing and settlement systems JEL Code(s): G, G2, G21, L, L1, L12, L13, L2, L22