A floored plan: Europe’s CCP recovery rules draw fire

CCPs and clearing members both unhappy with proposed allocation of non-default losses

It is often said the best compromises are the ones where both sides are dissatisfied with the outcome. If that’s true, then the European Parliament has found the perfect balance on the question of how central counterparties (CCPs) should handle losses that do not arise from clearing member defaults.

Both CCPs and clearing members have reacted with irritation to the Parliament’s proposed floor that sets the minimum amount of non-default losses CCPs must bear before passing on further losses to

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: