{"id":5384,"date":"2012-12-31T00:00:00","date_gmt":"2012-12-31T06:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2012\/12\/clearing_house_association_wan"},"modified":"2022-04-28T15:31:38","modified_gmt":"2022-04-28T20:31:38","slug":"clearing-house-association-wan","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/clearing-house-association-wan\/","title":{"rendered":"Clearing House Association Wants Greater Protections for Clearing Members"},"content":{"rendered":"<p>This month, the Clearing House Association put out a paper with nine new recommendations about an emerging plan for the central clearing of derivatives. It was in April that the International Organization of Securities Commissions and the Bank for International Settlement&#8217;s Committee on Payment and Settlement Systems issued final standards geared toward making clearing, payment, and settlement systems more able to withstand financial defaults and shocks.<\/p>\n<p>The Clearing House Association is warning about what it perceives as unrealistic and poorly defined expectations for Clearing Members and how this might end up creating additional problems. This issue involves indicators that there is friction between experts, international regulators, and standard-setters on how to utilize central counterparties to ease financial contracts\u2019 traffic through global markets. The bank-owned association said that although it considered the CPSS-IOSCO standards a key beginning in tackling the issues associated with financial market infrastructures, under the new standards, we may be left with the problem of clearing member firms that provide important support to central counterparties ending up with too much of the burden. The Clearing House Association wants to make sure that liability for clearing members is ascertainable and limited. It is calling on central counterparties to make sure that the proper governance structures and liquidity demands and liquidity management protocols on clearing members are assessed in the wake of conflicting, new demands, such as:<\/p>\n<p>\u2022 Liability for clearing members that is manageable, limited, and can be ascertained.<br \/>\n\u2022 Proper \u201cskin in the game\u201d for central counterparties.<br \/>\n\u2022 Margin requirements to protect clearing members that aren\u2019t defaulting from those that are.<br \/>\n\u2022 Realistic expectations for clearing members when liquidity demands are made by central counterparties.<br \/>\n\u2022 Coordinating liquidity demands placed on clearing members to prevent them from getting overwhelmed with intraday margin calls.<br \/>\n\u2022 Restrictions on the how and when central counterparties can modify practice standards or rules during a crisis.<br \/>\n\u2022 Greater transparency on central counterparties so that clearing Members can monitor risk.<br \/>\n\u2022 The ability to isolate loss liabilities within central counterparties so that contagion doesn\u2019t occur.<\/p>\n<p>The Clearing House Association says that the recommendations are intended to offer general principals as new rules are made known.<\/p>\n<p>Our <a href=\"https:\/\/www.securities-fraud-attorneys.com\">institutional investment fraud lawyers <\/a>represent clients throughout the US. Contact our <a href=\"https:\/\/www.securities-fraud-attorneys.com\">securities fraud law firm <\/a>today.<\/p>\n<p><a href=\"https:\/\/www.theclearinghouse.org\/index\">Clearing House Association<\/a><\/p>\n<p><strong>More Blog Posts:<\/strong><\/p>\n<p><a href=\"https:\/\/www.investorlawyers.com\/blog\/2010\/06\/sec_inquiring_about_wisconsin_1\">SEC Inquiring About Wisconsin School Districts Failed $200 Million CDO Investments Made Through Stifel Nicolaus and Royal Bank of Canada Subsidiaries<\/a>, Stockbroker Fraud Blog, June 11, 2010<\/p>\n<p><a href=\"https:\/\/www.investorlawyers.com\/blog\/2008\/10\/wisconsin_school_districts_sue_1\">Wisconsin School Districts Sue Royal Bank of Canada and Stifel Nicolaus and Co. in Lawsuit Over Credit Default Swaps<\/a>, Stockbroker Fraud Blog, October 7, 2008<\/p>\n<p> <a href=\"https:\/\/www.investorlawyers.com\/blog\/clearing-house-association-wan\/#more-5384\" class=\"more-link\">Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>This month, the Clearing House Association put out a paper with nine new recommendations about an emerging plan for the central clearing of derivatives. It was in April that the International Organization of Securities Commissions and the Bank for International Settlement&#8217;s Committee on Payment and Settlement Systems issued final standards geared toward making clearing, payment, [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3740],"tags":[],"class_list":["post-5384","post","type-post","status-publish","format-standard","hentry","category-miscellaneous"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Clearing House Association Wants Greater Protections for Clearing Members &#8212; Investor Lawyers Blog &#8212; December 31, 2012<\/title>\n<meta name=\"description\" content=\"This month, the Clearing House Association put out a paper with nine new recommendations about an emerging plan for the central clearing of derivatives. &#8212; December 31, 2012\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/clearing-house-association-wan\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Clearing House Association Wants Greater Protections for Clearing Members &#8212; Investor Lawyers Blog &#8212; December 31, 2012\" \/>\n<meta name=\"twitter:description\" content=\"This month, the Clearing House Association put out a paper with nine new recommendations about an emerging plan for the central clearing of derivatives. &#8212; December 31, 2012\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Clearing House Association Wants Greater Protections for Clearing Members &#8212; 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