Thomas Murray rates over 25 CCPs globally. The key components of rating a CCP are credit risk, treasury & liquidity risk, asset safety risk, financial risk, operational risk and governance and transparency risk.
CCPs, in their central role as a buyer to every seller and a seller to every buyer, have taken a central role in the post-crises regulatory reforms at a global level. They are risk concentrators in the markets, since mandatory clearing will mean that the vast majority of off and on exchange transactions will need to be cleared.
With a plethora of CCPs globally, each is different from the other. This means that there are different risks and cost structures, so selecting a CCP to clear your trading activity is a hugely important decision.
Whether it is a CCP’s margin model or the impact of individual segregation on asset safety, the risk assessment provides users with a primary source of information. Take the default waterfall as an example, our CCP reports offer a colour-coded waterfall diagram for each CCP with detailed descriptions. Our online comparison tool can generate a report across various CCPs, enabling users to easily identify any lack of CCP’s ‘skin-in-the-game’, inappropriate commingling of different asset classes, significant or unlimited liability to replenish the default fund, or other problems illustrated by the waterfall diagrams.
Our CCP Risk Assessments comprise of the actual risk assessment report, which provides our independent analysis into the risks, margining and default waterfalls of each CCP we monitor, ongoing surveillance of each CCP and a transparency index.
Clients who use this product
Thomas Murray is the leading provider of data, risk assessments and analytics on global capital markets and financial counterparties.
Banks, funds and capital market institutions use Thomas Murray's products and services to supplement their internal resources, meet regulatory obligations and reduce costs.