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.
OTC Derivatives Clearing Summit Europe: CCP model secrecy is ‘wrong and unjustifiable’, says BoE official
CCPs should be required to make details of their models public, says the Bank of England’s payments and infrastructure division head
Segregation clash could stop European firms using US CCPs
Segregation clash
KDPW_CCP: Trying to find a niche in OTC clearing
Finding a niche
OTC Derivatives Clearing Summit Europe: EU clearing mandates unlikely before August 2013
The first clearing mandates are unlikely to be in place in Europe before August 2013, says Bank of England’s head of payments and infrastructure division
IMF: CCP structure increases systemic risk
The likely increase in the number of central counterparties will create more 'pockets of risk', says senior economist
Rule changes make it harder for small firms to use CCPs - Risk.net poll
Esma's decision to make indirect clearing an optional service could leave smaller firms without clearing access, according to a poll of Risk.net readers
Korea to miss OTC clearing deadline
It is ‘highly unlikely’ that Korea will meet the deadline to start clearing OTC derivatives by January 1, 2013 due to legislative delays, according to market participants
Time running out for buy-side clearing docs negotiation, dealers warn
Buy-side firms need to begin negotiating OTC clearing documentation now or risk being forced to adopt one-size-fits-all standard templates
Indirect clearing: The capital conundrum
Draft European Securities and Markets Authority rules on indirect clearing caused uproar when they appeared in June. The regulator removed the most controversial elements in its final text, but dealers are still in the dark about the capital treatment…
Standard docs may not prevent clearing contract crunch
Preventing a clearing contract crunch
Client clearing: Soaring volumes disguise scary workload
Not clear yet
Gazprom Marketing & Trading: Powering up for clearing
Powering up for clearing
Final Esma clearing rules too rigid, CCPs say
Regulator has not given clearing houses enough freedom to calculate margin requirements, critics say - and Europe's CCPs may have to charge more for futures than their US rivals
Sponsored forum: Collateral management
Scope for more efficient collateral movement
The last word: Basel III
The leading question
OTC Derivatives Clearing Summit: Some FCMs charging five times more than others, says panel
Fees charged by clearing members can vary wildly – and low-cost providers may try to terminate relationships if they prove unprofitable, panellists warn
OTC Derivatives Clearing Summit: Buy side bemoans ‘lowest common denominator’ treatment
Pension and insurance firms complain CCPs treat them the same as hedge funds
OTC Derivatives Clearing Summit: Joint solution needed on intraday margin calls, says panel
Dealers, clients and clearing houses need to work together to resolve problems caused by intraday margin calls, say panellists
OTC Derivatives Clearing Summit: Nearly a third of uncleared CDS are clearing-eligible
SEC study finds large portion of clearing-eligible CDS still trading bilaterally
OTC Derivatives Clearing Summit: Industry will struggle to meet clearing deadlines
Buy-side firms will struggle to finish legal and operational work ahead of US mandated clearing deadlines – and they are not the only ones, says panel
European OTC clearing documentation faces delay
Complications over close-out mechanisms and segregation models will delay the European addendum by up to three months, say dealers