European banks followed their US peers in adopting a settled-to-market (STM) model for cleared derivatives in 2017, although they have been less forthcoming in disclosing the exposure-reducing effects of the switch.

Risk Quantum analysis shows significant reductions in gross derivatives values reported by several European banks at end-2017, although the proportion attributable to STM, rather than other measures, was harder to determine at some firms than others.

Swiss lender UBS reported a cut

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The week on Risk.net, September 15–21, 2018