Trade exposures with CCPs - CRR Provision: Difference between revisions

Trade exposures with CCPs - CRR Provision (view source)

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+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.
 {{crrsnap|306(1)}}
 ===Discussion===
-So a clearing member must be able to pass losses occasioned by the default of a CCP on to its client. But it will be a generous client indeed who does not insist on a carve-out from that right for defaults caused by the clearning member's own negligence, wilful default or fraud. Would such a carve-out invalidate an application of {{crrprov|306(1)(c)}}?
+But it will be a generous client indeed who does not insist on a carve-out from that right for defaults caused by the clearning member's own negligence, wilful default or fraud. Would such a carve-out invalidate an application of {{crrprov|306(1)(c)}}?
 Respectfully, it is submitted, it would not: