As we discussed in aprevious post, the Clearing Rule came into force in 2017. The main purposes of the Clearing Rule are to reduce counterparty risk in the over-the-counter (“OTC”) derivatives markets and to increase financial stability by requiring certain counterparties to cle...
(b) They are clearing members of the largest central counterparties offering clearing for interest rate swaps in the United States, Europe, Japan and Hong Kong. 2. See the April 2024 joint consultation paper on the annual updates to the FSP List. 3. The updated FSP List will be gazetted ...
aIn this chapter we consider the role of large central counterparties to provide a means for centralisation, mutualisation and reduction of counterparty risk. Following the credit crisis that started in 2007, there has been a significant interest in having centralised clearing entities for counterparty...