CCP interoperability challenges in Asia

Clearing confusion

Most market participants resigned themselves to accept that central counterparty (CCP) clearing would be a new feature for the over-the-counter derivatives business two years ago. The collapse of Lehman Brothers and bailout of AIG in September 2008 made it apparent that major counterparties engaged in derivatives activities were simply ‘too-interconnected-to-fail' as without suitable safeguards their failure could threaten the viability of the entire financial system. This brought about the