Shift to Clearing Presents CCP System Challenges (Risk)

Good article from Risk outlining the various technologies used by the CCPs. We spend so much time talking about how much the dealers are spending, how SEFs will develop electronic swaps trading and when HFT swaps trading its easy to forget how complex the technology implementation will be for the clearinghouses:

“OTC derivatives trading will be a multiple-to-multiple environment, with clearing members having to monitor their clients’ risk limits across multiple execution venues and multiple clearing houses,” says Kevin McPartland, New York-based senior analyst at Tabb Group, a consultancy. This will mean all the elements of OTC derivatives – clients, dealers, execution venues and CCPs – will have to co-operate and share information. “It will require a whole complex web of networking to move this risk data around so everyone is looking at the latest information,” he adds.

Read the full article at

Leave a Reply

Your email address will not be published.