CCP Risk archive
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FIA responds to OCC proposed margin add-on charge
FIA believes that the current backward-looking, monthly-calibrated margin add-on falls short of providing adequate risk mitigation and should only serve as a temporary measure while a more precise and transparent system is developed.
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FIA responds to FICC rules implementing the US Treasury clearing mandate
FIA responded to the Fixed Income Clearing Corporation’s (FICC) proposal to implement the SEC’s new clearing mandate for US Treasurys. FIA’s letter urges FICC to provide flexibility for market participants to clear US Treasurys at multiple clearinghouses, as they may arise in the future.
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FIA responds to FSB consultation on Liquidity Preparedness for Margin and Collateral Calls
FIA’s response highlights several key points for international standard setters to consider including the importance of margin transparency and simulation tools from Central Counterparties for NBFIs and the need for a balanced regulatory approach to ensure compliance with FSB recommendations without overburdening clearing members.
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FIA backs international effort to promote "effective practices" for variation margin
FIA has responded to a discussion paper released by international standard setters that sets out eight "effective practices" for streamlining variation margin in centrally cleared markets. The discussion paper addresses the need for greater transparency and understanding of margin practices at central counterparties, particularly in light of recent episodes of market volatility triggered by the COVID crisis and Russia's invasion of Ukraine.
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FIA responds to JSCC consultation on initial margin and clearing fund calculation methods
FIA has submitted a response to the Japan Securities Clearing Corporation’s consultation, which proposes to introduce stress add-on initial margin charges and a partial revision of the clearing fund calculation method in its listed financial derivatives clearing service.
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FIA responds to FICC access and segregation proposals
FIA has responded to the Fixed Income Clearing Corporation’s proposals to revise its customer clearing access models and to modify its margin segregation rules in order to implement the SEC’s new clearing mandate for U.S. Treasuries. FIA's response identifies conflicts between the proposed access structures and CFTC rules to which FCMs are subject.
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FIA calls on international regulators to continue progress on margin transparency
FIA has filed a letter with international standard-setting bodies urging further progress on efforts to increase the resilience of global derivatives markets in times of stress. The letter was submitted in response to a consultation on initial margin requirements in centrally cleared derivatives markets that was issued by Basel Committee on Banking Supervision (BCBS), the Bank for International Settlements' Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO).
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CFTC advisory committee examines CCP resilience, FCM concentration and Treasury basis trade
The Commodity Futures Trading Commission's Market Risk Advisory Committee, a group consisting of representatives from exchanges, intermediaries, end-users and advocacy groups, held an open meeting on 9 April to discuss a wide range of current policy issues and market trends.
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FIA and ISDA recommend changes to Singapore’s capital framework for clearinghouses
On January 22, FIA and ISDA jointly responded to a consultation from the Monetary Authority of Singapore on proposed amendments to the capital framework for approved exchanges and approved clearinghouses.
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Navigating a New Era in Derivatives Clearing
In recent years, the landscape of global central counterparty margin models has witnessed a significant transformation in risk management. Central to this shift is the migration from the long-established Standard Portfolio Analysis of Risk (SPAN) model to various Value-at-Risk (VaR) based models for the purpose of calculating margin for exchange-traded derivatives.
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