Trade exposures with CCPs - CRR Provision: Difference between revisions
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{{fullanat|crr|306(1)|}} | {{fullanat|crr|306(1)|}} | ||
In which the {{crr}} requires that, for a clearing member to achieve a zero weighting on its exchange traded derivatives clearing business, it must first be able to pass losses occasioned by the default of a {{crrprov|CCP}} on to its client. | In which the {{crr}} requires that, for a clearing member to achieve a zero weighting on its exchange traded derivatives clearing business, it must first be able to pass losses occasioned by the default of a {{crrprov|CCP}} on to its client. | ||
===Where this came from=== | |||
In the same way that that irritating guy with the [[Telecaster|Tele]] in the Redondo Guitar Center lists his influences as Hendrix, Sonic Youth and Mahler, this part of {{tag|CRR}} lists as its influences the [[BIS]] paper from April 2014, [[capital requirements for bank exposures to central counterparties]]. That assumes your brokers are all agents the way US [[futures clearing merchant]]s are. | |||
Twist: European clearers generally act in a principal capacity. Cue tons of fun trying to work out what this all means. | |||
====The [[clearing member]]’s own [[negligence, fraud or wilful default]]==== | ====The [[clearing member]]’s own [[negligence, fraud or wilful default]]==== | ||