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V Cross-Border Issues, 15 Cross-Border Clearing

Ulrich Karl

From: Clearing OTC Derivatives in Europe

Edited By: Bas Zebregs, Victor de Seriere, Rezah Stegeman, Patrick Pearson

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2023. All Rights Reserved.date: 19 April 2024

Subject(s):
Derivatives — Central Securities Depository (CSD) — Committee on Payment and Settlement Systems (CPSS) — Central counterparty (CCP) — Securities settlement system (SSS) — Settlement — Financial regulation — European Systemic Risk Board (ESRB)

This chapter begins with a summary of the regulatory and legal frameworks of clearing, including how third-country (or foreign) central counterparties (CCPs) are treated in selected jurisdictions. It provides a description of the impact that cross-border clearing has on capital requirements and explains the concepts of interoperability and bases. The chapter then lays out how clearing participants (either clearing members or clients) navigate cross-border clearing. It describes how these clearing participants choose which CCP to access and how to do so. After a description of operational considerations of cross-border clearing, the chapter looks at risk and crisis management in a cross-border setting and considers particular issues when clearing in small or closed jurisdictions.

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