Clearinghouse standards

8 November 2015


International regulators release progress report

On Sept. 22, four high-level groups of international banking and market regulators released a progress report on their efforts to enhance the resilience, recovery planning and resolvability of central counterparties. 

The progress report was published by the Basel Committee on Banking Supervision, the Committee on Payments and Markets Infrastructures, the Financial Stability Board and the International Organization of Securities Commissions. 

The report described current regulatory initiatives in several areas, including surveys on margin practices, stress testing and loss allocation tools and a review of how CCPs manage their financial risks. The report also described a recently launched project to assess the “interdependencies” among CCPs and their clearing members and the implications for global financial stability. The first step, according to the report, will be to map the “key interconnections” including financial obligations of clearing members, reliance on particular banks for lines of credit and links with custodians and settlement agents. The report included a timeline for completing the work plan:

  • Mid-2016: publish consultations on CCP resilience and recovery issues. 
  • Oct-2016: publish report on interconnections among CCPs and clearing members. 
  • End-2016: determine the need for standards or guidance for CCP resolution, including the need for additional prefunded financial resources.
  • MarketVoice