European CCPs issue paper on OTC clearing benefits
The European Association of Central Counterparty Clearing Houses (EACH), today issued its position paper "Strengthening market integrity and efficiency", outlining the benefits of central counterparty (CCP) clearing for over-the-counter (OTC) derivatives.
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Global and European users and public authorities increasingly recognise the benefits of CCP clearing in both securities and derivatives markets. CCPs demonstrated the effectiveness of central counterparty clearing in managing the recent market turmoil, including the management of user defaults, significantly reducing the disruption that resulted from the events that shook markets in late 2008.
Members of EACH are actively engaged in responding to the European Commission's call to provide clearing services for Credit Default Swaps and other OTC derivatives, working closely with users, regulators and supervisors to extend the benefits of CCP clearing and reduce systemic risk.
The paper is available on the EACH website