Stacey Anderson is a Principal Analyst in the Financial Stability Department at the Bank of Canada where she works in the area of CCP oversight. Prior to joining FSD, Stacey held various positions in the Bank’s Financial Markets Department and at the Department of Finance. Stacey received her Masters of Economics from Queen’s University and is a CFA charterholder.
This paper provides a framework to compare linked and unlinked CCP configurations in terms of total netting achieved by market participants and the total system default exposures that exist between participants and CCPs.
Using turnover ratios, Anderson and Lavoie describe the recent evolution of liquidity in various secondary government bond markets, focusing specifically on the market for Government of Canada securities. They attribute much of the recent variation in liquidity to such cyclical factors as changes in the interest rate environment and investors' appetite for risk, as well as developments in equity markets in the late 1990s. They also examine longer-term structural and policy-related trends, including the rate of adoption of financial and technological innovations and the level of government borrowing and debt-management initiatives.