01 June 2017
London
Reporter: Drew Nicol

SIX x-clear adjusts CCP risk model


SIX x-clear has recalibrated its inter-central counterparty (inter-CCP) risk models in order to improve accuracy.

SIX Securities Services, through its clearing arm SIX x-clear, has adjusted its CCP’s model towards a more ‘defaulter-pays’ approach of raising margin requirements and lowering default fund. SIX said this was done to bring its model in line with industry standards

“The risk exposure arising from CCPs interoperating with other CCPs to effectively compete for efficiency and development optimisation will be significantly reduced,” said SIX x-clear.

“A balanced risk exposure is essential for the liquidity flows between markets.”

SIX x-clear has adapted its current inter-CCP margin model to include a margin add-on for co-CCPs in order to continue best practice in risk management and the fair treatment of all clearing members.

Roger Storm, deputy head of CCP clearing at SIX Securities Services, said: “SIX Securities Services constantly looks at ways to improve its risk modelling in the best interests of its members and financial market participants.”

“SIX x-clear has been in close discussions with other CCPs and the oversight authorities in order to ensure interoperability among CCPs and to better balance the interests and exposures among markets.”

More news
The latest news from Securities Lending Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
No further SFT regulations on the horizon, says European Commission
20 October 2017 | Paris | Reporter: Jenna Lomax
article synopsis 300 characters only so it fits to three lines. always add three periods to finish synopsis...
LEI compliance is non-negotiable, says ESMA
20 October 2017 | Paris | Reporter: Jenna Lomax
Steven Maijoor, chair of ESMA stated that there is no room for negotiation where legal entity identifiers are concerned
US appeals court dismisses US equity lending mismanagement case
20 October 2017 | Missouri | Reporter: Drew Nicol
Allegations of mismanagement of a securities lending programme brought by two US Bank pension beneficiaries was dismissed by the US Court of Appeals for the Eighth Circuit this week
Clearstream promises post-Brexit services continuity
19 October 2017 | London | Reporter: Jenna Lomax
Clearstream confirmed it will continue to offer stable custody services to its UK-based clients no matter how the Brexit negotiations evolve
EU commission lays down the law on MiFID II compliance
19 October 2017 | Brussels | Reporter: Jenna Lomax
Belgium, Malta, France, Greece, Luxembourg, Netherlands, Portugal, Spain and Sweden are among the 19 infringing member states due to face the commission’s wrath
Margin rules depress derivative contract terms, survey finds
19 October 2017 | Brussels | Reporter: Jenna Lomax
Only few changes were reported regarding credit terms and conditions with respect to non-centrally cleared OTC derivatives
AAOI and Euronav top FIS hot stocks lists
18 October 2017 | London | Reporter: Jenna Lomax
The Belgium-based operator of crude oil tankers and storage facilities, has been a regular feature on the list in the last month