CCPs’ skin in the game drops to historic low
Clearing members bear increasing load, analysis of 15 clearing houses shows
Risk Quantum analysis shows that only 2.16% of prefunded default resources at 15 central counterparties (CCPs) came from clearing houses’ own capital in the second quarter – the lowest proportion since public disclosures began in 2015.
Aggregate skin in the game (SITG) – the capital that CCPs contribute to default funds – across 28 clearing services spanning Australia, Canada, the European Union, Japan, Singapore, the UK and the US, stood at $1.76 billion, compared with $79.8 billion from
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