Study floats idea of breaking up CCP services
Since the financial crisis, central counterparties (CCPs) have grown in size and systemic importance and may now require a different structure, according to a study by regulators and an industry contributor. Their proposal is to split CCPs into separately-owned and funded entities providing different services.
“It may be possible to isolate the functions that are truly critical to the provision of the public good – [such as] multilateral netting of novated trades, custody of margin and
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