Banks, clearinghouses and regulators will all have their champions weighed in as PostTrade 360° Nordic 2024 stages a debate on the crucial topic of CCP recovery and resolution, in Stockholm on 5 September. You can still pick up your free (!) ticket to attend there.
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Banks are worried enough about the risk of having to pay for mistakes they themselves make in business. The mutual responsibilities that they can face as clearing members, if another one of those at their clearinghouse would default, adds the next layer: the risk of having to pay for mistakes that someone else made and you had no control over.
Setting the cost-splitting rules for the highly rare but potentially disastrous situations when things go wrong at the clearinghouse is a delicate balance. Banks have suggested that clearinghouses should stake more of their own money into the reserve funds (as “skin in the game”). The clearinghouses, perhaps naturally, emphasise the problems it could entail.
This session goes to depth on how policies have been implemented in Europe, and what changes we can see in how CCPs manage the bottom end of the “waterfall” of reserves. What are the main recovery tools in operation today? Are we up for further changes in practice? If so, will they be driven by the market or by regulation? What would such changes look like, and how do they affect clearing members and their market-participant clients?
Panellists:
Haroun Boucheta, Head of Public Affairs, Securities Services, BNP Paribas,
Owen Thorpe, Chief Risk Officer, Cboe Clear Europe,
Randy Priem, Coordinator of the markets and post-trading unit + Finance professor, Belgium’s Financial Services and Markets Authority,
Alex Krunic, Advisor to the Chairman, Commercial Bank of Kuwait (CBK),
Richard Metcalfe, Head, Regulatory Affairs, World Federation of Exchanges.
Moderator: Joshua Hurley, Director – Post Trade Consulting, Davies.
Seek a bit of background? PostTrade 360° has previously looked into this in articles/sessions including this one (Stockholm 2023) and this one (Stockholm 2021).
• The consolidated PostTrade 360° Nordic conference, in Stockholm on 4–5 September 2024, came to host 1,200+ delegates and featured 70 sessions.
• Our coverage relating to the event is indexed here.
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