Clearing members in cash clash with Apac CCPs

Banks and clearing houses wrangle over who should pay for losses on invested collateral

Ask a clearing member in Hong Kong or Singapore to name their biggest worry, and you might be surprised at the answer. Investment risk is starting to outweigh more headline-grabbing perils such as member defaults and central counterparty blow-ups, as CCPs face growing scrutiny over how they manage clearing participants’ cash.

Members say a confluence of factors – mainly a lack of access to deposit accounts at central banks and underdeveloped repo markets in key Asian jurisdictions – are curbing