Fears mount over CCP client porting

Shrinking pool of FCMs could undermine efforts to port client positions in a default

russian-dolls55
Shrinking FCMs pose challenge for CCP default management

The dwindling allure of client clearing means central counterparties (CCPs) could find it difficult to port client positions to a healthy bank if another member defaults, according to regulators and clearing houses.

If a clearing member defaults, a CCP would seek to move its client positions to another member – often in a matter of hours – without adversely impacting the clients' open positions.

However, capital constraints have prompted some banks to exit the client clearing business, while oth

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