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.
Buy side hits out at CFTC's foreign CCP proposals
BlackRock, Citadel, Eaton Vance say CFTC plan would limit access to liquidity
Oesa: Europe little to learn from US clearing roll-out
US would have benefited from pragmatic European approach
EU regulators concerned by CFTC's foreign CCP rules
UK's FCA warns US plans may not pass European equivalence test
CFTC close to setting out DCO exempt pathway for foreign CCPs
US regulator poised to release alternative regime to DCO licence
Basel exposure limits raise questions for client clearing
CCP exposures not in scope of new regime, but clearing members are
Buy side urged to share risk of CCP collapse
BlackRock and Citadel say all participants should accept exposure
Regulation greatest barrier to African derivatives exchanges
Technology shortfalls and lack of liquidity compound challenges
Euroclear criticises non-neutral industry utilities
Major CCPs part of profit-maximising, exchange-owned entities
UniCredit's Mustier ‘frightened’ by CCP capital levels
Clearing members pressure CCPs to put more of their own money at stake
Asia dealers review CCP risk management approaches
Shanghai Clearing House lags regional peers, say market participants
Central counterparty links and clearing system exposures
Links between central counterparties (CCPs) enable participants to clear positions in any linked CCP without needing to maintain multiple CCP memberships.
Isda AGM Roundtable: What OTC reform means for end-users
Isda directors warn on fragmentation, access and liquidity - but expect problems to pass
OTC reforms: Numbers only tell part of the story
Derivatives reform glass is half-empty for regulators
Overnight heroes: central banks weigh loans for CCPs
Eurex and SGX can borrow from their central banks, while rivals have to rely on common-or-garden lenders
EU banks fear capital hit from CCP approval delays
Risk-weights set to jump after June 15
Mexico rushing to pass European CCP tests
EU customers face penalty without Esma blessing
Benchmarking European repo markets
Sponsored forum: Stoxx
Korea trading error prompts global clearing house review
KRX is rethinking its own rules in the event of a member default
Hopes grow that US CCPs will get green light from EC
Market participants detect new mood on cross-border issues: "The two clearing regimes aren't really compatible, but neither side wants to start a shooting war"
Repo netting curbs threaten government bonds, say dealers
Repo netting criteria in the revised leverage ratio may be less forgiving than banks first thought
EEX seeks Asia commodity derivatives boost
Cleartrade Exchange acquisition based on greater prospects for growth in Asian commodity markets
Shanghai Clearing House becomes fifth in Asia to start OTC clearing
First CNY interest rate swaps cleared in China
OTC client clearing service of the year: Barclays
Barclays has retained its leading market share in client clearing, despite the onset of mandatory clearing in the US and the entrance of new players. It also found time to score a few market firsts
Corporate risk manager of the year: Microsoft
The first US clearing mandates came into force last year in three separate phases. While most corporates looked to take advantage of the corporate hedging exemption, Microsoft decided right from the start to voluntarily clear everything