central-counterparties

Learning Objectives: Discuss the risks faced by a CCP and the ways it manages its exposures. Provide examples of a loss waterfall. Explain the different methods of managing the default of one or more members of a CCP. Questions: 24.30.1. RiskShield CCP is a central counterparty that clears a...

Learning Objectives: Define a central counterparty (CCP) and describe the mechanics of central clearing. Explain the concept of novation under central clearing. Define netting, multilateral offset, and compression and provide examples of each. Describe the application and estimation of margin...

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...

Learning objectives: Describe wrong-way risk and contrast it with right-way risk. Identify examples of wrong-way risk and examples of right-way risk. Discuss the impact of collateral on wrong-way risk. Discuss the impact of wrong-way risk on central counterparties. Questions: 917.1. Among its...

Learning objectives: Identify counterparty risk intermediaries including central counterparties (CCPs), derivative product companies (DPCs), special purpose vehicles (SPVs) and monoline insurance companies (monolines) and describe their roles. Describe the risk management process of a CCP and...

Learning objectives: Describe the benefits of central counterparties (CCPs) and the potential risks which can arise when clearing through a CCP. Explain the interconnections between central counterparties and other financial institutions, including banks, clearing members, financial markets, and...