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Waterfall

The Risk

Central Counterparties (CCPs) have a systemically important role in resolving many of the issues that triggered the 2007 global financial crises, both in clearing OTC derivatives markets and domestic cash markets. Every CCP has its own way of operating, different margin models, risk waterfalls, financial, ownership and governance models.

  • What happens to your collateral contribution in the event of a default?
  • What happens to your open positions?
  • If a major participant at the CCP goes into default, how quickly does your collateral come under threat?

These questions and others are hugely important for deciding which CCP(s) best fits investor needs. There is huge potential for systemic risk in CCPs and the consequences of failure could be very serious for clearing members, their clients, and the wider market.

The Solution

Thomas Murray has addressed the global regulatory and risk imperative to assess and monitor CCPs as risk concentrating vehicles. CCP Risk Assessments assess the extent to which a CCP manages your risk burden. There are two key benefits:

  • Every assessment brings transparency to the industry for the benefit of users
  • Using Thomas Murray provides cost savings to regulated firms that are required to perform due diligence and risk assessments on CCPs
CCP Solution

Thomas Murray assesses risks at CCPs across six categories:

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Counterparty Risk

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Liquidity

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Asset Safety

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Financial Risk

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Operational Risk

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Governance & Transparency

We safeguard clients and their communities

Petroleum Development Oman Pension Fund

Petroleum Development Oman Pension Fund

“Thomas Murray has been a very valuable partner in the selection process of our new custodian for Petroleum Development Oman Pension Fund.”

ATHEX

ATHEX

"Thomas Murray now plays a key role in helping us to detect and remediate issues in our security posture, and to quantify ATHEX's security performance to our directors and customers."

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Northern Trust

“Thomas Murray provides Northern Trust with a range of RFP products, services and technology, delivering an efficient and cost-effective solution that frees our network managers up to focus on higher Value activities.”

Contact an expert

Derek Duggan

Derek Duggan

Managing Director | Banks

Guy Sherry

Guy Sherry

Head of CRM  |  Banks