NSCC caught $600m short during meme-stock frenzy
Worst-case losses would have wiped out the CCP’s available liquid resources on one day in Q1
The National Securities Clearing Corporation would have faced a worst-case hypothetical loss of $40.7 billion if its largest clearing member had defaulted in the first quarter of this year. The projected loss exceeded the US central counterparty’s (CCP) available liquid resources at the time by roughly $600 million, meaning it would have failed its Cover 1 obligation if this event had materialised.
The NSCC’s latest disclosures show it increased the liquid resources it has available to cover
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