Study floats idea of breaking up CCP services

Proposal includes explicit public backstop for key functions and private provision of other services

cut apple - divide - Getty - web.jpg
Study proposes splitting CCPs into separately owned and funded entities providing different services

Since the financial crisis, central counterparties (CCPs) have grown in size and systemic importance and may now require a different structure, according to a study by regulators and an industry contributor. Their proposal is to split CCPs into separately-owned and funded entities providing different services.

“It may be possible to isolate the functions that are truly critical to the provision of the public good – [such as] multilateral netting of novated trades, custody of margin and

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: