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ISDA Releases Principles on CCP Recovery, Risk Mitigation 

November 26, 2014
Jeff Patterson, Forex Magnates

The International Swaps and Derivatives Association, Inc. (ISDA) has announced the publication of essential principles on both the adequacy and structure of central counterparty (CCP) loss-absorbing resources.

There has been a concerted effort to educate market participants, ranging from Europe‚Äôs European Market Infrastructure Regulation (EMIR) and Dodd-Frank in the United States. Clearing houses have thus become integral components of derivatives market infrastructure.

The ISDA and its constituents have recently focused on ensuring that the risks of a CCP reaching an inflection point of non-viability are minimized. In an effort to prevent widespread use of public funds, ISDA has opted to stipulate and outline a defined recovery plan that subsequently addresses these risks.

Read more: Forex Magnates

 
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