Clearing houses urge CFTC to act on non-default losses

US clearing members divided on whether NDLs are CCPs’ responsibility or a mutual risk

Clearing house operators have told the Commodity Futures Trading Commission they need more government intervention on how to allocate losses not caused by the default of a clearing member.

“We need further regulatory guidance on the matter, and not only because it relates to how recovery and resolution is handled in general. [It] is an area that is controversial and not one we can ourselves tackle,” said Teo Floor, systemic risk policy adviser to German clearing house Eurex.

He said that once