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.
Risk USA: Basel Committee considers capital charges on bank exposures to CCP default funds
A new capital charge on bank exposures to CCP default funds could be introduced in December, says Osfi's White.
Regulators review margin rates for CDS
Market analysis: CDS margining
Are there enough liquid assets to satisfy regulations?
Grease is the word
Sponsored statement: Eurex Clearing
Eurex Clearing offers more ways to rein-in risk
Pension funds worried about CCP margin
Margin hunters
Fixing UBS’s risk management problems
Lofts' conversion
Cash variation margin requirements worry pension funds
Having to post cash as variation margin to central counterparties (CCPs) will cause substantial yield losses for pension funds that conduct liability-driven investment (LDI) strategies, according to fund managers.
Homogeneous regulations could contribute to risk, says former Brazil central bank chief
Arminio Fraga warns about the use of globally standardised methodologies for regulatory capital, as well as the dangers of multiple central counterparties
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