Putting CCP capital on the front line is a prerequisite for the EU granting clearing equivalence
Clearing house could lose up to 25% of its members without agreement
Prime brokers proposing to guarantee the performance of clients’ trades
This approach would align the interests of clearing houses and their members
Isda AGM: Role of supervisors will vary for each situation, say market participants
Isda AGM: CCP equity should not be spared, say clearing members
Distributed ledgers can benefit – and won't replace – CCPs, says Nasdaq Clearing president
New technology set to boost repo netting, shrinking $50bn facility "substantially"
FDIC vice-chair on leverage-cutting schemes, TLAC and TBTF
CCP predicts 80% reduction in capital charges for banks acting as clearing agents
Wujiang Lou presents a framework to compute recursive CVA and FVA via Monte Carlo simulation
CCP failed to properly capture vega, strike and wing risk, expert report claims
A wounded CCP should not have a claim on users’ assets, says hedge fund group
CFTC adopts substituted compliance for European CCPs; US clearers still waiting on Esma approval
Changing treatment of variation margin could benefit banks, but hurt clients
This paper highlight the key differences between CCPs and banks in terms of roles, risk profiles, balance sheets and systemic characteristics, and the implications of these differences for CCP risk management and regulation.
This special issue contains papers covering central counterparty default management and stress testing.
“Incomplete demutualization” and financial market infrastructure: central counterparty ownership and governance after the crisis of 2008–9
This paper examines risk management governance challenges of the demutualized CCP ownership model and the incentives faced by “incomplete demutualization”, where clearing members remain the ultimate underwriters of CCP default risk.
The authors discuss the incentives created by the structure of CCPs’ default waterfalls, drawing out the role of transparency and governance in ensuring effective incentives.
Irish central banker says haircuts should be seen as temporary loans to CCPs in a crisis
Initial margin is the best source of liquidity for CCPs in a crisis, argues Irish central banker
The paper makes an important contribution to this ongoing dialogue by proposing a set of principles and an analytical framework for calibrating skin-in-the-game contributions.
Regulators and clearing members urge central counterparties to do more to guard against attacks