Fears mount over CCP client porting

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

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

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net 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 indvidual account here: