28 May 2015
How radically do existing CCP risk models and default fund arrangements need to change?

“…For the moment, the vast majority of instruments migrating to central clearing are IRS, which overall are highly liquid and so relatively easy to value,” says Niki Beattie, managing director of Market Structure Partners, who recently benchmarked Australia’s monopolistic clearing regime against international best practice. “It’s far easier to contemplate failure if the CCP isn’t the pivot for the entire national market…”