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.
EDF’s head of credit risk: misconceptions of assessing credit
EDF Trading North America’s head of credit risk talks to Lianna Brinded exclusively about the misconceptions of assessing credit risk in the energy and commodities market
Mandatory CCP a worry in Japan
Mandatory CCP worries
Sponsored educational feature: Counterparty credit risk in portfolio risk management
Counterparty credit risk in portfolio risk management
Risk South Africa Rankings 2010
Neck and neck
ECB's Constâncio: grant CCPs access to central bank liquidity
European Central Bank's Vítor Constâncio says central counterparties should get access to central bank liquidity so long as they're regulated
Video: Special Asia report on energy risk management
Lianna Brinded sends us a special report from Hong Kong and Singapore, after speaking to several leaders from the energy and commodities market about risk management
Video: Isda Asia-Pacific chief says new regulations 'potentially dangerous'
Keith Noyes, Asia-Pacific regional director at the International Swaps and Derivatives Association (Isda), speaks to Lianna Brinded about regulatory changes and the impact they will have on the energy and commodities markets.
South Africa
South Africa special report
FSB prepares for push to clearing
Not so clear
South Africa plays catch-up on clearing
Playing catch-up
Banks gear up for client clearing
A clear choice
Eurex move ignites multiple CCP debate
Eurex move ignites multiple CCP debate
CFTC resurrects CCP ownership limits
Proposed limits on CCP ownership aimed at reducing conflicts of interest
CME chief says central clearing house removes 'black swan' threat
Chicago Merchantile Exchange's (CME) Asia energy and metals chief says the group’s central counterparty clearing (CCP) house removes the possibility of a ‘black swan’ incident
Isda Asia chief: Forcing energy and commodities into CCPs creates more risk
Forcing energy and commodities contracts into central counterparty (CCP) clearing is “potentially dangerous”, says Isda's Noyes
EU rules changes may cause power market liquidity risk
Power market risk managers face a new set of liquidity and market risks if the European Union (EU) enforces proposed regulation changes, says RWE chief
Let CCPs compete, Isda conference told
Competing for business will not fatally undermine derivatives clearing – as long as the system is well regulated, speakers claim
SGX AsiaClear sets sight on becoming Asia's CCP for rates and FX swaps
SGX president Muthukrishnan Ramaswami says the new interbank OTC clearing service for SGD and USD interest rate swaps will target Asian banks as a start, and soon global investment banks that trade with Asian counterparties. Asian local currencies non…
Middleware at fault for Barclays clearing break
Middleware at fault for Barclays clearing break
EC finalises OTC rules, leaves key technical items to Esma
Corporate hedgers claim a victory, but details on clearing eligibility and thresholds to be tackled by new authority.
Exchanges and clearing
Special report
Spanish debt office in negotiations on credit support annex thresholds
Government agency looks to alleviate funding costs for bank counterparties in swaps transactions.
The challenges of central clearing
The challenges of central clearing