Nasdaq slow to share defaulter info with peer CCPs
“Why didn’t you tell us earlier?” other clearers want to know
Nasdaq Commodities has been accused of breaching a “gentleman’s agreement” by fellow clearing houses, after failing to quickly share the identity of the member who defaulted on September 11. The default produced €114 million of losses that had to be mopped up by the central counterparty and its surviving members.
“When this happened, Nasdaq didn’t immediately identify, for at least 24 hours, who the defaulter was to the other clearing houses in the world,” says a source at one regulator. “If
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