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Clearing and Collateral Management Roudtable

The new Clearing and Collateral Management Roundtable, facilitated by Risk Dynamics, is designed to enable the exchange of views and experience between peers in clearing (notably CCPs) and their clients on the impact of central clearing on risk and collateral management practices. Main risks refer to market, counterparty, liquidity and collateral risks.

Central repositories and CCPs were created at the initiative of financial market regulators to reduce systemic counterparty risk by central reporting and clearing of derivatives transactions. However, in this process, systemic risk has been concentrated in CCPs by transferring bilateral risks into a handful of qualified central clearing counterparties. Risk and Collateral Management practices were also affected in all financial institutions due to this structural market change. As regulators increase their focus on concentration risk created by central clearing, a number of questions have been raised, as the consequences of a CCP failure might be very severe for any participant and the market at large. How do CCPs manage collateral deposits? If a major participant at the CCP is entering into default, how quickly does the collateral come under threat? Etc

This roundtable will allow reviewing these questions and other significant issues with the objective of assessing the multiple effects of managing derivatives products through CCPs.

At 15:30, Florence Besnier, Business Development Manager, CACEIS in Paris, will chair the discussion panel on "CCP services for small market participants"

  • What solutions are being developed proportionate to CCP services for small market participants?
  • What would - for instance - be the impact of a trade mutualization through cooperatives (on cost, on conterparty default risk, on operational risk, etc.)?


Download the complete agenda