A seven-member panel, six subtopics and 70 minutes in the schedule. Banks and clearinghouses have a large number of important risk issues to discuss with each other – and in the PostTrade 360° conference they did.
Increasing demand from the EU side, that owners of central counter-party clearinghouses should pick up more of the bill if a clearing member defaults with counter-party losses uncovered by posted collateral, was one of the areas covered by the two-sided panel. Put simply, CCPs have objected to taking on the risk of the higher costs – known as skin in the game – while market participants welcome the idea.
Led by industry senior Anthony Freeman, the panel comprised three representatives of clearing houses, together with the same number of delegates from the market-participant side.
From the bank side, panelists were:
Rogier van Kempen, Executive Director, J.P. Morgan,
Oliver Sjølin, Chief Risk Manager, Nordea, and
Gert Ellerkmann, Global Risk Governance & Strategy Specialist, ABN AMRO Clearing.
CCP representatives were:
Owen Thorpe, Head of Risk and Control, EuroCCP,
Brendon Bambury, Head of International Client Relations & Sales, SIX, and
Alex Krunic, Head of Equities, LCH.
Other subjects included emerging services of clearing for crypto-related services such as exchange-traded funds based on bitcoin holdings or cryptocurrencies indices. Learnings after the blow-up of the US-based high-risk family fund Archegos earlier in 2021 was also discussed.
• The 36-page pdf magazine, which includes the agenda, can be downloaded by clicking here.
• For a 4-page breakout of the agenda section, click here.
• News around PostTrade 360° Copenhagen is gathered here.
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