Covid-19, Ukraine war, inflation boom … Markets have shaken in the last years but clearinghouses have generally stood up well. A panel at PostTrade 360° Copenhagen on Tuesday morning shared its overview of what is going on in clearing at the moment.
The session was sponsored by LCH SIX and EuroCCP
The panel consisted of …
Joanne Donaghey, Director of Sales and Relationship Management, LCH,
Brendon Bambury, Head Sales and Relationship Management UK, Nordics and Benelux, SIX, and
Tim Beckwith, Head of Commercial Services & Business Development, EuroCCP
The discussion was led by Anders Tvilde, Manager, Sector & Infrastructure, Nordea.
One effect of the suddenly emerged inflation, with higher interest rates, is that the effective cost of posting cash as margin collateral with CCPs has grown. As a result, many market participants look instead at how they can increase the collateral proportion covered by non-cash assets.
With the Danish capital market’s heavy weight on pension funds, another issue to watch locally will be whether they will keep a current exception from obligations to clear interest-rate and credit-default swaps.
The effects of Euronext’s entry into the CCP industry was discussed too.
• News around PostTrade 360° Copenhagen 2022, on 20–21 September, is gathered here.
• The conference info site, with detailed agenda, is here.
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