The World Federation of Exchanges (WFE) wants the securities industry to focus on how central counterparty clearinghouses (CCPs) handle rare but potentially extreme non-default losses (NDLs), and evolve to a situation that avoids any confusion about liability among users of CCP services. “NDLs refer to losses that may arise from any risk event that is… Read More >>
ISDA’s Best Practices Target CCP Members
The International Swaps and Derivatives Association (ISDA) is setting forth in a new white paper a set of best practices for central counterparty clearinghouses (CCPs) in a bid to prevent troubling defaults that have to then be absorbed by CCP participants. Citing two recent defaults, ISDA says that they represent “the weaknesses in some CCP… Read More >>