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FIA Global voices concerns about CCP risk 

May 5, 2015

Global Investor

Derivatives trade organisation publishes recommendations for limiting systemic risk posed by CCPs

FIA Global has recommended a number of processes for assessing and managing risks that arise from clearing through central counterparties (CCP).

The derivatives trade organisation's position paper is written from the perspective of clearing members, and addresses the risks that CCPs bring to clearing members, their clients, and the market more generally.

"Clearing members are uniquely positioned to assess central counterparty risk and recommend improvements in risk management," said Walt Lukken, president and CEO of FIA Global. 

"In addition to allowing market participants to hedge risks through central clearing, our members also play an important role as a backstop in the event of a default. Our goal is to ensure that the risks of central clearing are both transparent and effectively managed."

Read more: Global Investor

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