The Future of Clearing - The WFE and Oliver Wyman

The Future of Clearing

The World Federation of Exchanges (“WFE”), the global industry group for exchanges and central counterparties (CCPs), has published a joint report with Oliver Wyman examining the post-crisis developments that have shaped the current clearing landscape, along with forward-looking recommendations on how to build the CCP of the future. 

CCP Best Practices

Welcome to 2019 - The OTC Space has been busy with other projects, but I couldn't miss passing on this one from ISDA. Does anyone else find it interesting that ISDA has taken on the role of reminding CCPs how to do their job properly?

I would think regulators themselves should be reminding CCPs of these sensible guidelines. Given the flood of clearing regulations, is there some doubt that CCPs can do their job?

LCH and UK CCPs Swerve a No-Deal Disaster (For Now)

Relieved CCP Man

LCH faced with issuing a 'notice of retirement' for its UK clearing services will benefit from the European Commission granting a temporary equivalence status to UK CCPs.

Managing risks of a no-deal Brexit in the area of central clearing

New Patent on Risk Monitoring : An Issue for CCPs and FinTech Vendors?

A new patent covering the risk monitoring of multiple cleared CCP accounts may conflict with CCPs and other FinTech vendors from providing similar functions.

European banks mull leaving UK derivatives market | CCP Notice to Close Out Coming?

Rising concern among executives about access to clearing houses after Brexit

Bill: Epic consequences for UK CCPs in late November or early December if there is no Brexit deal enabling clearing into the UK. Worth a read.

Could the Nasdaq default happen in Rates markets?

What could cause a Rates CCP to lose €100m from the Default Fund? We look at 10y IRS in NOK vs SEK. We find that liquidity add-ons prevent very large positions from being under-margined. Nevertheless, we present a scenario that causes a €74m loss. And then we explain why we really shouldn’t worry about it! […]

Default at Nasdaq Clearing

Last week’s default at Nasdaq Clearing in the power market, generated a lot of press, both because member defaults are few and far between events at CCPs and the fact that it coincided with the ten year anniversary of the Lehman’s bankruptcy. There are few analogies that we can draw between the two events; the […]

ISDA Responds to ESMA Consultation on Clearing Obligation

ISDA has published a response to the European Securities and Markets Authority’s consultation on extending... Read more ISDA Responds to ESMA Consultation on Clearing Obligation

Consultation Paper no.6 on the Clearing Obligation under EMIR

A very long paper which in short asks: Should the exemptions from the Clearing Obligation for a third-country entity which is part of a consolidated group based in the EU, be extended? The answer is almost certainly Yes, but I'll allow you to submit your own feedback.