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.
Risk waterfall at CME, Ice makes porting harder, dealers say
The need to provide portability could pressure CCPs to lean more heavily on initial margin than default funds to absorb losses
The CCP race is on down-under
Australia blue
Ignoring the perils of portability
The perils of portability
The product no-one wants to sell: portability held up by lack of rules
Under-the-counter derivatives
ASX vs LCH in race to be Australia's OTC clearer
Home-town blues
Launch of interoperability not perfect
Interoperability has launched in cash equities with a system that is good, but not perfect
Lamb discusses CME Clearing Europe's goals
A clear goal
EC's CRD IV says dealers can ignore portability risks
While Basel Committee deliberates, EC proposes 'value of zero' for contingent risks associated with clearing portability
Forex options clearing complicated by guaranteed settlement requirements
CPSS-Iosco guaranteed settlement requirements make foreign exchange options clearing more difficult, say participants
ECB and World Bank call for exemptions from US derivatives rules
World Bank believes imposition of national regulations on multilateral development institutions is unprecedented intrusion on the internal operations of international organisations
Collateral transformation needs to be carefully planned by clearing members, says Isda’s O’Connor
In an exclusive video interview, Isda chairman Stephen O’Connor says there is a finite capacity for clearing members to provide collateral transformation services to their clients
Grensted parts company with LCH.Clearnet
The clearer's head of business development - and one of SwapClear's architects - left the firm today
Pricing, Basel, Paulson & Co: the top stories of 2011 so far
A review of the top Risk.net stories during the first half of 2011
Regulatory reform puts risk management under threat in Asia
Risk management under threat
Technology
Systems check
Proliferation of central clearing in Asia causes tech trials
Technology trials
Derivatives users face tough choices on CCPs
A clear path?
Client clearing poses acute liquidity risks
Margin jump risk
Deconstructing Emir
Deconstructing Emir
Peer review needed to prevent regulatory arbitrage, says AMF
Clearing rules 'won't work' unless US and European regulators can agree on detail, says senior French regulator
The complexity of client clearing
Client clearing complexity