Home  Journals  Finance and Credit  24(456) - 2011 June

Modern regulatory approach to CCP,s activity in EU

Available online: 23 June 2011

Subject Heading: MANAGEMENT OF THE FINANCE

JEL Classification: 

The article describes the ongoing processes in the European Union to form a complex regulatory and supervisory model for “new” subjects in the financial market - central counterparties. The regulatory measures are based on stimulating of wide scale use of CCP,s by market participants, adequately to CCP’s capital, risk management, corporative governance and to other most important aspects of their activity. The author analyses in details standards worked out by Basel Committee for banks on their capital adequacy to cover CCP risks, as well as presents his view on the formulated by the Committee differences in its approach to qualified and non-qualified central counterparties, that consequently, as he concludes, gives additional stimulus to banks to use CCP’s services and, on the other hand, to CCP,s - to comply with standards and requirement set by Euro Commission.

Keywords: financial market, central counterparty, OTC market derivatives, risk management, Basel-III, CCP risk-based capital adequacy

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ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

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