Banks voice fresh concerns over CCP non-default losses
Dealers could face cash calls to recapitalise an ailing CCP that suffers a critical non-default loss under FSB proposals
Dealers have criticised proposals from supervisors that could see them subjected to cash calls to cover extreme non-default losses at clearing houses – those which threaten a central counterparty’s (CCP) existence but do not result from a member default, such as investment or operational losses.
The fears were stoked by draft guidance issued by the Financial Stability Board (FSB), which is currently consulting on recovery and resolution planning regimes for CCPs globally.
If passed in their
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