Clearing houses reject standardised 'skin in the game'

Overly punitive requirements on CCPs could skew incentives

WFE opposes minimum CCP contributions to default waterfalls

The World Federation of Exchanges (WFE) has rejected suggestions that its central counterparty (CCP) members should be subject to standardised 'skin-in-the-game' capital requirements, warning that such one-size-fits-all approach could encourage unwarranted risk-taking by clearing banks.

"CCPs have the most expertise about their markets, participants and market structure, and must be tasked with sizing their contributed capital in a manner that reflects the alignment of clearing member and CCP

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