IECA Webinar: Understanding the Central Counterpart (CCP) Model
In September 2018, a Norwegian power market trader racked up losses he could not cover, leaving commodities companies who are part of the Nasdaq clearing house, and the exchange itself, to plug a 114 million euro ($133 million) hole in a contingency fund.
Join our European Webinar on Monday, April 12 at 3:00 p.m. BST/10:00 a.m. EDT (GMT+1), sponsored by C-RISK Software, as speaker Paul Kitching looks at the relationship between a central counterpart (CCP) and its Clearing Members and the clients of Clearing Members, the risks that a CCP is exposed to, and how a CCP manages those risks. Whist all CCP’s follow best practice, as laid out by IOSCO, each will apply their own set of rules and procedures; the Webinar will focus primarily on Nasdaq Clearing AB.
This webinar will cover:
- The September 2018 default
- Common categories of Membership
- Relationship between Clearing Members (CMs) and the CCP
- Relationship between clients of CMs and their CM and with the CCP
- The CCP performance guarantee: Who is covered?
- How the CCP manages its risk:
- Membership criteria
- Daily margining and initial margin
- What happens in the event of default?
- Declaring a default
- The close out process
- Covering a shortfall: The “waterfall” explained
- Mutualising losses: The Member Default Fund
- Size of fund
- Membership contribution
Non-members: $35.00 USD
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