CPMI And IOSCO Request Feedback On Access To Central Clearing And Portability

The Committee on Payments and Market Infrastructures and IOSCO issued a joint consultative report and requested comments on new client clearing access models and portability.

In their report, CPMI and IOSCO highlight current developments in the client clearing of derivatives and analyze to what extent concentration ("in a relatively small number of bank-affiliated clearing firms") creates concerns for client access. CPMI and IOSCO describe new models of client clearing, such as "sponsored" access, and developments in the ability of clients to "port" positions (including in default scenarios). Two identified practices that support successful porting in the event of default include (1) preemptively identifying potential alternate clearing firms and (2) the use of account structures that facilitate fully margined client positions. CPMI and IOSCO propose (i) other effective practices concerning three key elements (communication, coordination and harmonization), (ii)