Banks and CCPs clash over non-default losses

Banks balk at being on the hook for losses from investments or cyber attack, but many clearers say the risk should be shared

Blank cheque
Banks worry they have to give a blank cheque to CCPs

Nobody wants to be the last person at the table when it's time to settle the bill. Yet that's the position banks and their clients could find themselves in if a central counterparty (CCP) were to suffer significant losses – even if nobody has defaulted.

CCPs and their members acknowledge that non-default losses (NDLs) – those incurred by the clearing house unrelated to member defaults – are a risk that needs addressing urgently. In these events, the CCP would not have access to all its various

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