The International Swaps and Derivatives Association
(Isda) has called on clearinghouses to open up about the
risks they take - and what's being done to safeguard the
The Wall Street trade group recently recommended that
clearinghouses, which are designed to protect member firms in
case of default during a derivatives transaction, undergo
mandatory stress tests. It’s just the latest in a
series of calls for greater transparency.
Central counterparties (CCPs) have become a crucial part of
the derivatives market infrastructure, supported by regulation
that requires standardised over-the-counter (OTC) derivatives
to be cleared.
Given the systemic...