UniCredit's head of corporate and investment banking is "frightened" by the low capital levels at central counterparties (CCPs) such as Eurex and LCH.Clearnet and has suggested that users should either provide unlimited contingent funding for CCPs or that clearing should not be run for profit at all.
"We are moving from interdependence of banks in terms of derivatives that are traded between banks, which have €1.6 trillion of capital, towards concentrating all the derivatives exposure in CCPs, w
The week on Risk.net, October 6-12, 2017Receive this by email
- Quantile, TriOptima face off in cleared swaps compression battle
- SGX, HKEX expect to be among first wave of Mifid II equivalence
- Leaked EU doc could shield legacy swaps from clearing grab
- ABS set for revival under US Treasury’s liquidity buffer plans
- Quants stymied by lack of alternative risk premia flows data