Clearing houses reject standardised 'skin in the game'

Overly punitive requirements on CCPs could skew incentives

aifmd-0913
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

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 [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

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 individual account here: