27 June 2011

ISDA publishes Credit Clearing Comparative Analysis

The survey serves two purposes: to promote a level of standardisation at points in the work flow which can be targeted for such harmonisation; and to assess the current - and where possible future - operational CCP work flows in order to risk manage any transitional problems with upcoming models.

This document was created on behalf of the Credit Implementation Group (CIG), at the request of the Credit Steering Committee (CSC). The CIG was asked to set out the comparative models and differences between operational processes for current and future Central Clearing Counterparties (CCPs) credit offerings. To achieve this objective, the CIG appointed the Credit Clearing Comparative Analysis Working Group (sub-group). The CIG sub-group were tasked with identifying the key operational topics and with creating a CCP survey that would extract the desired output across each of these topics from the CCPs. It was requested that both the survey and resulting CCP work flow diagrams focus solely on front-to-back operational processing and not venture into business-related questions, which are being debated elsewhere.

The analysis undertaken is not intended to provide an industry best practice, nor comment on the effectiveness of any CCPs or their processes. The purpose of the document is solely to highlight the identified divergences that may exist between the CCPs operational processes, and does not present any participant's individual or the sub-group's collective opinion on the offerings presented. As a result, the sub-group does not present any conclusions or findings, aside from those that are perceived to be factual divergences stated within this document.

It is expected that the output will be utilised to promote standardisation within the marketplace, and assist in an effort to risk manage any near term changes to the CCP offerings.

Full analysis

© ISDA - International Swaps and Derivatives Association