1. Nicole Seaman

    P1.T3.21.11. Over-the-counter (OTC) central counterparty (CCP)

    Learning objectives: Provide examples of the mechanics of a central counterparty (CCP). Describe the role of CCPs and distinguish between bilateral and centralized clearing ... Identify and explain the types of risks faced by CCPs. Identify and distinguish between the risks to clearing members...
  2. R

    GARP.FRM.PQ.P2 Bilateral Netting - GARP FRM P2 2018 MOCK (Q49)

    There are two parts to this post. The first deals with a Practice Question Q 49 from 2018. The second modifies that to test the concept of multilateral netting. Q 49. Four derivative counterparties have entered into bilateral netting arrangements. The exhibit below presents a summary of their...
  3. Nicole Seaman

    P2.T6.602. Central counterparty (CCP) margin requirements (Gregory)

    Learning objectives: Explain the loss waterfall in a CCP structure. Define initial margin and variation margin and describe the different approaches and factors in calculating initial margin. Discuss the impact of initial margin on prices, volume, volatility, and credit quality. Explain factors...