Skin in the game of top CCPs varies
The average default fund has less than 4% of total resources contributed by the host CCP itself
At most leading central counterparties (CCPs), the amount of own capital they put on the line to cover losses in the event of a clearing members’ default is vanishingly small relative to that contributed by participants.
On average, CCP own funds made up a little less than 4% of prefunded default fund resources as of Q3. Risk Quantum assessed data disclosed for 23 default funds across 10 top CCPs.
The Fixed Income Clearing Corporation (FICC) had the lowest amount of skin in the game (SITG) as
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