CCP
WHAT IS THIS? A central counterparty (CCP) manages default risk by collecting initial and variation margin from both parties to a trade. Spill-over losses are absorbed via a default fund to which all members contribute – introducing a degree of mutualised risk – and by the CCP’s own capital. The concept is an old one that was extended to over-the-counter derivatives in the aftermath of the financial crisis.
CME warns some fintechs ‘miss the point’ in clearing
IDX panellists see reduced operational role for CCPs that will instead act as trusted oracles
LCH-JSCC basis to boost XVA acceptance in Japan
Prices now "can't be explained without reference to XVAs", says Nomura credit head
EU could go it alone on leverage ratio, says MEP
Swinburne says clearing should be shielded from ratio “if Basel does not deliver”
Strength turns to weakness for old OTC market
Non-cleared notional falls $36 trillion as costs and complexity grow
Newcomer of the year: Nodal Clear
Power exchange’s new clearing house boasts plenty of ‘skin in the game’
Against the tide: why Kiwi banks want to be clearing members
Rising fees and absence of leverage ratio cause some New Zealand banks to consider direct clearing
Emir countdown raises cost questions for the buy side
Firms fear wider spreads, lower liquidity after May 21 frontloading date
Economists question cost benefits of derivatives clearing
New research finds no compelling economic rationale for central clearing
Dealers commit to provide liquidity for Libor alternative
Transition will be gradual with bilateral swaps adopting new rate before CCPs
Capital buffers for CCPs ‘the way forward’, says CPMI chair
ECB board member Benoît Cœuré calls for minimum capital requirement and stress testing of CCPs
DTCC coaxing HFTs to become clearing members
US Treasuries CCP concerned about contagion risk threat to existing members
Interview: ECB’s Benoît Cœuré on CCP capital and stress testing
"I would be very much in favour of the concept of a Pillar 2 for CCPs", says CPMI chair
Eurex faces questions on savings from buy-side clearing
CCP rebuffs argument that direct membership model will add to risk
Dealers disagree over charge for CCP counterparty risk
Fed stress tests push US banks towards charging CVA for cleared derivatives
CCP interoperability drive poses margin challenges
Chicago Fed researchers point to problems around issue of concentration margin
India joins global move to tighten CCP capital standards
Putting CCP capital on the front line is a prerequisite for the EU granting clearing equivalence
Eurex describes its new ISA Direct platform
Sponsored video: Eurex Clearing
The challenges of derivatives central counterparty interoperability arrangements
This paper stuides a relevant policy question: does interoperability of cash equity CCPs also imply that it is beneficial to introduce interoperability for derivative CCPs?
OCC "pushing big time" for SEC-EU equivalence deal
Clearing house could lose up to 25% of its members without agreement
Banks pushing Eurex to allow hedge funds into cleared repo
Prime brokers proposing to guarantee the performance of clients’ trades
CCP recovery funds would inspire risk management – JFSA
This approach would align the interests of clearing houses and their members
Regulatory intervention triggers complicate CCP resolution
Isda AGM: Role of supervisors will vary for each situation, say market participants
LCH and dealers clash over loss allocations
Isda AGM: CCP equity should not be spared, say clearing members
Blockchain tech for derivatives CCPs – friend or foe?
Distributed ledgers can benefit – and won't replace – CCPs, says Nasdaq Clearing president