UK Treasury proposes clearing solvency reforms
Daily news headlines
LONDON – The UK Treasury has published a consultation paper of proposed reforms to Part 7 of the 1989 Companies Act, modifying general solvency law to protect central counterparties – such as clearing houses and exchanges.
The paper, Modernising the insolvency protections for the operation of financial markets – proposals to reform Part 7 of the 1989 Companies Act seeks to protect clearing houses and exchanges from risk transfer, should one of their members default.
Current legislation does not recognise the commonly used ‘default funds’ used by clearing houses to offset losses of a defaulting member or the range of contracts now cleared by central counterparties.
The proposals would expand the definition of market contracts, make allowances for default funds, and address technical issues arising from ‘client accounts’ across national jurisdictions. The Treasury has set an October 16 deadline for responses.
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 print this content. Please contact [email protected] to find out more.
You are currently unable to copy this content. Please contact [email protected] to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
More on Risk management
Regulation
What lies beneath: Nomura’s iceberg balance sheet
Collateral received by the Japanese bank exceeds its total on-balance-sheet assets – does it matter?
Receive this by email