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.
BoJ’s Nakaso: ‘No serious problems’ with JGB liquidity
New data shows drop in market depth, but QE is not threatened, says deputy governor
CCP basis driving CME clients to LCH, traders say
LCH sees doubling in client notional, while CME notional halves
CCPs confront cleared swap basis threat
From Japan to Mexico, CCPs are trying to avoid repeat of CME-LCH price disparity
CCP basis market takes off – but will buy-side join in?
Dealers are encouraging asset managers to trade CME-LCH swaps
How to fix the leverage ratio (by a prudential regulator)
“Embarrassing … ridiculous”: unnamed regulator lets fly at leverage rules
CCPs need thicker skins - Citi analysis
Analytical approach suggests CCPs should be putting more of their own capital at risk
Fresh delay will push EU-US CCP row into September
Decision had been expected in July; dealers sceptical new timeline will hold
FCMs try to ‘off-board’ credit and commodity funds
Fee hikes are being used to drive out clients that hog capital
IMF’s Kiff: variation margin haircutting ‘unfair’ to end-users
Risk Derivatives Clearing: in-the-money end-users may have losses on other positions
Shrinking ranks of swaps clearers could see new entrants
NFA official says "a couple" of firms have filed applications to open a swaps FCM
Fed official defends clearing incentives report
Risk Derivatives Clearing: pilloried report was "clearly useful", says clearing official
Fed economist sees gaps in CCP risk management
Quant Congress USA: CCPs struggle to model conditional losses and auction behaviour
UOB Bullion and Futures aims for global clearing role
Singapore broker sees opportunity in banking's changing competitive landscape
Clearers challenge Massad over EU client protections
Affiliate and client positions not commingled, they argue
Cave quid optes: waterfalls and central counterparty capital
This paper explores the lines of defense of a central counterparty. The author examines the lines of defence ("the waterfall") of a central counterparty (CCP) inter alia in the context of the requirements set by the Principles for Financial Market…
CME-LCH basis to persist, say dealers
Banks not convinced by CME plans to lure dealers from LCH.Clearnet
CCP wrangling sparks new frontloading fears
Dealers fear trades could be booked at CCPs they are not able to use
Q&A: Iosco’s Medcraft on CCP stress testing
CPMI-Iosco launch fact-finding mission on CCP risk management
Gross margin move unlikely, says EC's Pearson
A European move to two-day gross CCP margin "doesn't really work"
EU regulator renews attack on US CCP margin rules
Esma’s Verena Ross warns against one-day regime for house accounts
Who will be the dummy in CCP crash-tests?
Clearing houses, banks and regulators could all be caught in the wreckage
CCP stress-test rifts emerge as review gets underway
Banks, clearing houses and regulators all divided on question of standardised tests
Eurex looks to provide third-party clearing services in Asia
German firm aiming to support regional clearing market with one central offering
European Repo Council chief fears ‘meltdown of G20 dream’
Concerns heard as repo industry considers voluntary adoption of clearing