The International Swaps and Derivatives Association has published a paper concerning principles for central counterparty (CCP) recovery. The paper examines:

  • the adequacy and structure of a CCP’s loss-absorbing resources; and
  • crisis management planning in the form of a clearly defined and transparent recovery and resolution framework for CCPs when losses threaten to exceed their loss-absorbing resources.

In addition to examining the above, the paper outlines some common principles and highlights key items for discussion.

View ISDA – Risk Management, 25 November 2014