Issues relating to the resolution of a central counterparty (CCP) were discussed Tuesday in a meeting of regulators from the U.S. and the United Kingdom, according to a joint readout released by the agencies. The name of the CCP was not released.
According to the readout released by the Bank of England, Federal Deposit Insurance Corp. (FDIC), Commodity Futures Trading Commission (CFTC), Securities and Exchange Commission (SEC), and the Federal Reserve Board, the meeting was “one of a regular series of senior-level meetings held since 2017 to share views on CCP resolution and review the progress of an ongoing program of joint work among the agencies.”
The agencies also said the meeting was an “opportunity to review recent joint work undertaken by the agencies, in particular the development of detailed operational planning to support prototype resolution strategies for U.S. and UK CCPs.”
The agencies also indicated they will continue to share analyses and discuss policy formulation related to CCP resolution.
A CCP is an entity that facilitates trading in foreign (typically European) derivatives and equities markets, with the aim of managing counterparty credit risk. In 2009 (following the Pittsburgh (Pa.) summit held in the wake of the financial crisis of 2007-08), G20 leaders agreed that all standardized derivatives contracts should be traded on exchanges or electronic trading platforms and cleared through CCPs.