Direct clearing could solve CCP concentration risk

Allowing more clients to self-clear can reduce CCPs’ reliance on a few firms, says ex-Chicago Fed adviser


The business of derivatives clearing lies in the hands of a small number of financial firms. Given this high level of concentration, the financial insolvency of just one of the largest general clearing members (GCMs) would have a big effect on the clearing ecosystem.

First, it would entail the liquidation of a substantial and largely directional house portfolio. Second, client positions and initial margin assets would need to be transferred to other clearing members likely in a difficult

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options

If you already have an account, please sign in here.


Want to know what’s included in our free registration? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here