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*The BIS does talk about this a little: “The treatment in paragraph 192 to 194 may also apply to exposures of lower level clients to higher level clients in a multi-level client structure, provided that for all client levels in-between the conditions in (a) and (b) below are met.” The conditions (see [[Capital requirements for bank exposures to central counterparties|here]] for their text) are predicated on all the structures being of an agency kind. | *The BIS does talk about this a little: “The treatment in paragraph 192 to 194 may also apply to exposures of lower level clients to higher level clients in a multi-level client structure, provided that for all client levels in-between the conditions in (a) and (b) below are met.” The conditions (see [[Capital requirements for bank exposures to central counterparties|here]] for their text) are predicated on all the structures being of an agency kind. | ||
*One is therefore obliged to extrapolate from an agency model to the economic equivalent under a principal model. | *One is therefore obliged to extrapolate from an agency model to the economic equivalent under a principal model. | ||
===What about non-performance by a ''solvent'' [[intermediate broker]]?=== | |||
===The [[clearing member]]’s own [[negligence, fraud or wilful default]]=== | ===The [[clearing member]]’s own [[negligence, fraud or wilful default]]=== |