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CCP12 report: CCPs show strong resilience despite Covid-19

Release date: 16 Jul 2020 | Eurex Exchange, Eurex Clearing

CCP12 report: CCPs show strong resilience despite Covid-19

How did the cleared markets perform during the Covid-19 crisis and resulting turbulences? This question is answered in a detailed report issued by CCP12, the global association of CCPs. The report covers the wide range of markets with centralized risk management, including for instance oil, credit and interest rate derivatives.

Using data directly from CCPs, the report also quantifies how CCP risk models have fared during the crisis. This includes actual confidence levels for margin models, as well as the overall collateralization amounts held for centrally cleared risk.

The report comes to the general conclusion that the centrally cleared model has proven to be robust and resilient. Despite operating in a business continuity mode, CCPs continued their functions without major incidents in a high volume and volatility environment.

Market participants have used cleared markets to hedge and trade throughout the crisis, and the CCP model has enabled open markets and continued price discovery for key global and local markets. Heightened volumes indicate the value of such transparent and risk managed markets.

You can download the whole report here.

Eurex Clearing is a member of CCP12, a global association of 37 members who operate more than 60 individual CCPs globally across EMEA, the Americas, and APAC regions.