Dealers warn of risks of forced allocation in OTC clearing

dealing cards

Major derivatives dealers are worried the default of a clearing member of a central counterparty (CCP) could result in large losses for the other members if the auction process fails.

Most CCPs would use an auction-like process to sell off a defaulting dealer's portfolio in an organised way, but dealers worry about what would happen if the auction failed to shift the entire portfolio. That scenario is a real possibility in over-the-counter markets, where a major default can often lead to the

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