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CCP Risk archive

  • 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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  • CFTC wrestles with new clearinghouse models

    The Commodity Futures Trading Commission is attempting to update its regulatory framework for derivatives clearinghouses to address the rise of new business structures that integrate certain functions that previously were separated. The agency’s five commissioners disagree on the way forward, however, with some calling for moving forward one step at a time and others urging a slower, more comprehensive approach. Two pending proposals have brought these differences to light.

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  • CFTC Market Risk Advisory Committee discusses clearing firm consolidation, operational resilience, and CCP risk

    The US Commodity Futures Trading Commission held a meeting of the Market Risk Advisory Committee on 11 December to discuss several current policy issues affecting the derivatives industry.

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  • FIA responds to Bank of England approach to discretionary payments by CCPs

    FIA and ISDA have responded to the Bank of England's proposed statement of policy on discretionary payments by CCPs. The associations support the proposal but note they would welcome further guidance on how the BoE intends to consider the maintenance of public confidence in the UK financial system when using other supervisory and resolution powers.

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  • FIA and ISDA support CCP access to Fed accounts

    FIA and ISDA have jointly issued a letter of support to US Rep. Emmanuel Cleaver (D-Mo.) for his legislative efforts to expand access to deposit accounts offered by the Federal Reserve for clearinghouses regulated by the US Commodity Futures Trading Commission.

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