Analysis of Central Clearing Interdependencies
This report provides an analysis of the interdependencies in central clearing, which are often cross-border. This is the first comprehensive data collection of its type, covering 26 central counterparties (CCPs) from 15 jurisdictions in North America, South America, Europe and Asia-Pacific. The analysis addresses CCPs, their members and other financial institutions that are linked to CCPs such as custodians, settlement banks, credit and liquidity providers and investment counterparties. These data provide a unique view of the central clearing landscape that is not available elsewhere. The data collection and analysis was as part of the work to strengthen the resilience, recovery and resolution of CCPs undertaken jointly with the Basel Committee on Banking Supervision, Committee on Payments and Markets Infrastructures, and International Organization of Securities Commissions.
The network relationships analysed in this report are generally characterised by a core of highly connected CCPs and financial institutions and a periphery of less highly connected CCPs and financial institutions. Financial resources provided to CCPs are concentrated at a small number of CCPs and exposures to CCPs are concentrated among a small number of institutions. The study will help guide further work on CCP resolution. By the end of 2018 an assessment will be made of the value of regular data collections from CCPs to support authorities’ understanding of CCP interdependencies.