Academics call for tenfold jump in CCP capital cover
New framework finds mono-layer clearing houses may require biggest skin-in-the-game
Clearing houses may need to increase the capital they commit to their default fund by as much as 10 times if they are to appropriately align their risk with clearing member contributions, according to a paper published this month by an Oxford University maths professor and a US regulator.
The paper presents a new framework for quantifying the adequate amount of capital that a clearing house
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