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Consideration of Accounting Analysis for CCP Recovery and Continuity Tools

Risk & Capital
Capital October 15, 2015
< 1  min.read

This paper examines some factors that central counterparties (CCPs) should consider in structuring partial tear-up methodologies so as not to contravene rules on offsetting under the applicable accounting standards, which would render cleared derivatives uneconomical. The paper notes that CCPs can structure partial tear-up in a number of ways. Whatever the structure, the CCP’s methodology for partial tear-up should be transparent, written in its rule book, available to all potentially affected parties and should respect US GAAP and IFRS accounting standards.

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Documents (1) for Consideration of Accounting Analysis for CCP Recovery and Continuity Tools

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