Buy side urged to share risk of CCP collapse

BlackRock and Citadel say all participants should accept exposure

lifesupport

BlackRock and Citadel say buy-side firms should accept some degree of exposure in the event of losses overwhelming a central counterparty (CCP), to ensure all participants have an incentive to behave responsibly. That could include having their variation margin payments cut – one of a range of measures now being considered by regulators and CCPs as a way of recovering a clearing house if its other financial resources are wiped out.

"As a fiduciary, our job is to produce alpha for our clients and

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 info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

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