CCP
WHAT IS THIS? A central counterparty (CCP) manages default risk by collecting initial and variation margin from both parties to a trade. Spill-over losses are absorbed via a default fund to which all members contribute – introducing a degree of mutualised risk – and by the CCP’s own capital. The concept is an old one that was extended to over-the-counter derivatives in the aftermath of the financial crisis.
Video – Asia's illiquid markets complicate CCP default process: Isda
Directional portfolios and limited diversification will hamper recovery process
Esma considering revisions to CSDR buy-in technical standards
Extra-territoriality, costs, information gaps in settlement chains are challenges
Standard stress tests could create more risk, CCPs warn
Diverse products and risk profiles make standardised stress testing difficult
CCPs raise alarm on South African OTC reform
Push for CCPs to establish domestic presence riles LCH and CME
Basel will address leverage ratio threat to clearing
FAQ document to tackle treatment of segregated initial margin
Pension funds sign hedge-only agreements with banks
Cardano and PGGM promise not to give banks speculative trades
Calypso Technology: No FCM, no problem
Ex-RBS clearing head maps out a world without FCMs
CCP debate needs to go beyond skin in the game
Discussion needs to move on to how to keep markets functioning in a default
Banks blame regulation for FCA's clearing worries
UK regulator warns client clearing could become a “missing market” but defers study
Basel III transforming securities lending market
New entrants respond to challenges facing primes and lenders
Call for user-owned utilities to lower central clearing cost
But monopoly or duopoly inefficient, BNY Mellon says
Clearing houses face privacy law concerns
US reporting requirements could force CCPs to break national privacy laws
The invisible incentives of clearing
Leverage ratio is making life difficult for clearing's gatekeepers
Leverage ratio threat to Eurodollar liquidity
Cost of benchmark contract will rise and liquidity will fall, clearers warn
CME fears futures clearing retreat
Leverage ratio could prompt FCMs to be more picky, warns CME's Sprague
CME and LCH.Clearnet prep buy-side repo clearing
New clearing services could offer cross-margining benefits
India commodity exchange fights single CCP proposal
NCDEX finds itself in conflict with government clearing house proposals
CCPs confront the difficult maths of default management
The next time a big dealer defaults, it will hit a host of swap clearing houses simultaneously
Law firm of the year: Linklaters
Risk Awards 2015: CoCos and Co-Op were big wins for UK firm
DBS risk chief calls for wider margining exemption for non-banks
Margining rules for uncleared derivatives will be a drain on liquidity
CFTC to simplify route for clearing houses to be exempt DCOs
US regulator will pursue a quicker route to exempt foreign CCPs
Ice hits out at LCH over capital resistance
CCPs shouldn't fight calls for extra capital, says Sprecher
Six open to acquisitions to expand outside Switzerland
Stock exchange group has “excess cash”, says group CEO
CFTC's Massad muddies waters in CCP oversight row
Dual registration – not deference – is "proper model" for supervision, says CFTC chair