Author Archives: CCP12

The European Systemic Risk Board Proposes a Carve-out in Recovery and Resloution Rules for Interoperable CCPS

An interoperability arrangement is a link between central counterparties (CCPs) that allows clearing members to execute the same transaction in two different CCPs. These arrangements, approved since the implementation of the European Market Infrastructure Regulation (EMIR), have provided clearing members with increased opportunities for netting and led to a reduction in outstanding gross exposures in […]

The ECB Publishes the Bi-annual Financial Stability Review Highlighting the “Robustness of Central Clearing”

As we have seen, the financial markets have taken on a seismic shock which has been unprecedented since the 2008 global financial crisis (GFC). The COVID-19 pandemic has significantly impacted the global markets, prompting regulators and central banks to step in to initiate a steady recovery through policy measures and financial stimulus. Last week the […]

ISDA Reflects on 14-Years of IRD Developments with ISDA CDM Set to Enchance Standardisation of Derivatives Trade Processing

ISDA (International Swaps and Derivatives Association) released an informal comment on the 28th May highlighting their long-term commitment to making the derivatives markets safer and more efficient. Scott O’Malia (ISDA CEO) noted several key changes in relation to the ISDA 2006 Definitions[1] and progress of the ISDA CDM (Common Domain Model) for the derivatives market. ISDA […]

The FSB Guidance on Financial Resources to Support CCP Resolution Encounters Opposition from Former CFTC Chairman

Earlier this week, we informed that the FSB had published a new guidance focused on financial resources to support CCP resolution and on the treatment of CCP equity in resolution. The proposed guidance has encountered strong opposition from the former chairman of the US Commodity Future Trading Commission (CFTC) Christopher Giancarlo. On a piece published […]

The FSB Publishes – Guidance on Financial Resources to Support CCP Resolution and on the Treatment of CCP Equity in Resolution

The Financial Stability Board (FSB) published on Monday 4th May a new consultative report: “Guidance on financial resources to support CCP resolution and on the treatment of CCP equity in resolution.” The report builds on the concepts developed in the FSB 2018 Discussion Paper, taking into account the feedback received by the clearing community. The report […]

Bis Releases a Report on the CCP-Bank Nexus in the Time of COVID-19

Last week on the 11th May, the Bank for International Settlements (BIS) released a new bulletin of its Covid-19 series: “The CCP-bank nexus in the time of Covid-19”. The paper highlights the necessity by central banks to assess CCPs and banks jointly rather than in isolation when thinking about margining. In the report, the authors reconsider […]