About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

ECB Hosts Meeting on CCPs for CDS Market, Indicates Support for Greater Transparency

Subscribe to our newsletter

Originally appeared in MiFID Monitor

Following the meetings last month hosted by the Federal Reserve Bank of New York and the European Commission, the European Central Bank (ECB) has joined the debate concerning the introduction of central counterparties (CCPs) for credit default swaps (CDSs). The ECB hosted its first meeting this week and participants included potential providers of such CCPs, their regulators and representatives from the sell side and the buy side.

The ECB indicated its support for the introduction of CCPs in this market, in line with the views of the Financial Stability Forum and of the European Commission. It underlined the importance of reducing counterparty risk and of enhancing transparency in OTC derivatives markets, especially in those parts of the market that are of systemic importance, for example, the CDS sector.

It publicly supported the introduction of CCPs for OTC derivatives as an appropriate solution to tackle counterparty risk and market transparency. The ECB indicated that CCPs, by virtue of concentrating outstanding positions in one place, reduce the counterparty risk to which market participants are exposed. Moreover, it said that they also increase market integrity, transparency and the availability of information, as well as standardising the criteria for evaluation of exposures and freeing up collateral.

Participants at the meeting also underlined the merits of multiple solutions in general and of at least one European solution.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: How to simplify and modernize data architecture to unleash data value and innovation

The data needs of financial institutions are growing at pace as new formats and greater volumes of information are integrated into their systems. With this has come greater complexity in managing and governing that data, amplifying pain points along data pipelines. In response, innovative new streamlined and flexible architectures have emerged that can absorb and...

BLOG

Being Prepared for Tomorrow Requires an Advanced Data Architecture Today

By Don Huff, Global Head of Client Services and Operations, Bloomberg and Maureen Gallagher, Head of Enterprise Reference Data, Bloomberg. Data has quickly become the hottest commodity in the financial sector: trading and investment teams are laser-focused on accessing the best, newest data to get an edge on the competition. While this arms race for...

EVENT

TradingTech Briefing New York

Our TradingTech Briefing in New York is aimed at senior-level decision makers in trading technology, electronic execution, trading architecture and offers a day packed with insight from practitioners and from innovative suppliers happy to share their experiences in dealing with the enterprise challenges facing our marketplace.

GUIDE

Preparing For Primetime – How to Benefit from the Global LEI

They say time flies when you’re enjoying yourself, and so it seems the industry have been having a blast with its preparations for the introduction of the global legal entity identifier (LEI) next month. But now it’s time to get serious. To date, much of the industry debate has centred on the identifier itself: its...