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.
Technology
Systems check
Proliferation of central clearing in Asia causes tech trials
Technology trials
Derivatives users face tough choices on CCPs
A clear path?
Client clearing poses acute liquidity risks
Margin jump risk
Deconstructing Emir
Deconstructing Emir
Peer review needed to prevent regulatory arbitrage, says AMF
Clearing rules 'won't work' unless US and European regulators can agree on detail, says senior French regulator
The complexity of client clearing
Client clearing complexity
US still has no plans to give Asian sovereigns Dodd-Frank exemption, says Hong Kong regulator
Asian countries are concerned about the lack of Dodd-Frank Act CCP exemptions for sovereigns; proliferation of CCPs carries its own risks, say dealers
More guidance needed from regulators on clearing
Clear guidance?
Buy-side firms urged to avoid stampede to CCPs
Panel participants encourage buy-side firms to engage with CCPs early to avoid a last-minute rush
Central bank liquidity would help CCPs in distressed situations, says BIS
BIS weighs in on CCP central bank liquidity access debate
Client clearing services slowly maturing
A clear path?
Risk institutional investor rankings 2011
A guiding light
Esma gears up for Emir challenge
Esma essentials
CCPs object to ‘misleading’ Emir collateral clause
CCPs object to Emir collateral clause
Firms face heightened op risk while implementing US CCP rules
Through a glass darkly
Arguments against forex clearing flawed, says Duffie
Foreign exchange forwards and swaps should be cleared under Dodd-Frank despite industry reservations
Exemption clarity allows market participants to prepare for new regime
Banks, market infrastructures and industry associations prepare to move forward with regulatory preparation, now that fx swaps and forwards are set to be exempt
Collateral: look, but don’t touch
Collateral: look, but don’t touch
Inconsistency could lead to arbitrage
Consistency is key
SEC has flexibility on Dodd-Frank implementation, says Schapiro
Collaborating for change
Shift to clearing presents CCP system challenges
A clear challenge