LCH warns on CCP ‘auction risk’

CCP stress tests should consider possibility of failed auctions

LCH.Clearnet building London
LCH headquarters

The odds of a clearing house failing to effectively offload the positions of a defaulting member should be factored into international standards on stress testing and capital adequacy for central counterparties (CCPs), according to LCH.Clearnet.

The Bank for International Settlements (BIS) is developing a standardised stress test for CCPs at the behest of global banks and regulators. LCH issued a white paper last week, which called for auction risk to be incorporated into the standardised stress

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