19 February 2018
Visit www.avoka.com

Trade bodies urge more transparency on central counterparty risk

21 October 2016  |  3937 views  |  0 Source: Futures Industry Association

FIA joined four industry trade associations in a response to proposed guidance from the Committee on Payments and Market Infrastructures (CPMI), the International Organization of Securities Commissions (IOSCO) on resilience and recovery of central counterparties (CCPs).

FIA, along with the Global Financial Markets Association (GFMA), the Institute of International Finance (IIF), the International Swaps and Derivatives Association, Inc. (ISDA) and the Clearing House (TCH), strongly support the CPMI-IOSCO guidance on this critical issue.

“We appreciate that CPMI-IOSCO took a consultative and open approach to develop this guidance, holding roundtables and taking into account industry feedback” said Walt Lukken, president and CEO of FIA. “Central counterparty clearing is critical to our financial system and now, more than ever, effective and transparent risk management, resiliency and recovery planning is critical to strong global markets.”

While FIA was broadly supportive of CPMI-IOSCO’s work, in some areas the trade associations recommended that the guidance be enhanced or clarified to provide greater transparency to clearing members. The trade associations’ comments touched on governance, stress testing, coverage, margin, CCP contributions to losses, and recovery.

“Clearing members are the foundation of the clearing ecosystem and they play a critical role in the reduction of systemic risk in global financial markets,” Lukken said. “Our recommendations to CPMI-IOSCO are focused on aligning incentives at CCPs and enhancing clearing members’ ability to assess and manage CCP risk through greater transparency. We look forward to continuing to work with CPMI-IOSCO and other regulators on strengthening our financial markets through CCP resiliency.”

FIA has been actively engaged on this issue, publishing a position paper on CCP risk in 2015, taking part in regulatory roundtables, holding educational events for market participants, and publishing the CCP Risk Review, an interactive tool that helps market participants analyze and compare the rules and procedures of CCPs worldwide.

Comments: (0)

Comment on this story (membership required)

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit www.vasco.comvisit www.ebaday.comvisit www.nextgenbanking.co.uk

Top topics

Most viewed Most shared
Saudi central bank provides sandbox for banks to try out Ripple techSaudi central bank provides sandbox for ba...
11473 views comments | 16 tweets | 12 linkedin
ABN Amro moves escrow accounts to the blockchainABN Amro moves escrow accounts to the bloc...
9040 views comments | 15 tweets | 13 linkedin
ECB launches staunch defence of cashECB launches staunch defence of cash
8896 views 10 comments | 22 tweets | 26 linkedin
Aussie real-time payments platform goes liveAussie real-time payments platform goes li...
8800 views comments | 15 tweets | 43 linkedin
Coinbase and Visa at loggerheads over erroneous charges on customer crypto accountsCoinbase and Visa at loggerheads over erro...
7409 views comments | 12 tweets | 10 linkedin

Featured job

Six-Figure-Base, Double OTE, Benefits Package
London, UK

Find your next job