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.
Treasury repos may hit 20bp under DTCC liquidity plan
Repo CCP's committed liquidity facility could force price hike
Europe edges closer to final Emir clearing timeline
Deadline could arrive in mid-June; pressure to resolve EU-US dispute grows
Irish central bank warns of swaps market shut-out
Official says current clearing capacity “will be saturated” by Emir demand
LCH.Clearnet considering repo lines to pension funds
CCP talking to pension funds about becoming direct repo counterparty
Fears mount over CCP client porting
Shrinking pool of FCMs could undermine efforts to port client positions in a default
CFTC’s aim is 'not just' to expand clearing, Massad says
Agency will not “mandate a lot of products just to increase clearing”
No need for repo CCP in Australia, RBA says
Central bank says no financial stability case, and costs would be high
BoE questions unfunded CCP default fund top-ups
Funds would have to be replenished during period of stress
Fed support high on wish list for buy-side repo clearing
Risk USA panellists want liquidity support for planned new services
Clearing houses reject standardised 'skin in the game'
Overly punitive requirements on CCPs could skew incentives
Eurex head dubs CCP link-up fans 'liquidity have-nots'
Eurex and EuroCCP chief executives clash over merits of interoperability
Buy side mulls new Eurex direct clearing model
Agency-style arrangement may cut clearing costs, but regulators wary
Pension funds press for central bank repo backstop
Bank of England support seen as 'only' option to ease collateral fears
Q&A: CFTC’s Massad on cross-border conflicts
Regulator seeks to avoid repeat of CCP stand-off for trading rules
Expected delay to non-EU CCP approval risks frontloading panic
Lawyers fear scramble to close out trades
The Clearing House takes aim at CCP risk governance
Banks call for audit trails and beefed-up role for risk committees
CCP stress tests could help buy side pick winners
BlackRock exec calls for standardised test before European clearing starts
Central counterparties: addressing their too-important-to-fail nature
This paper argues that the current international policy measures with respect to central counterparties (CCPs) only partly address the systemic risk posed by CCPs.
Analysis of risk factors in the Korean repo market based on US and European repo market experiences during the global financial crisis
This paper evaluates the Korean repo market in the light of the global financial crisis.
JP Morgan exec challenges CCPs over skin in the game
"Why wouldn't you put up... all of your capital?" asks Olsen
SGX 'ahead of the curve' on CCP capital, argues director
Singapore Exchange puts up 25% of default fund capital; European and US CCPs contribute 2.6%
SEC’s Piwowar doubts CCPs should clear some instruments
Concern that historical price series volatility will not reflect jump-to-default risk
‘Smart’ derivatives can cure XVA headaches
Cryptocurrency technology could revolutionise derivatives valuation and collateralisation, say Massimo Morini and Robert Sams
ASX gets first DCO exemption from CFTC
Four Asian CCPs have applied, but Australian outfit is first to win an exemption