CCPs – Crises, Risks, Resolutions

Webinar Recording

Post-crisis reforms following the 2008-10 financial crisis massively changed the structure of markets. Perhaps the most important structural change was the increased concentration of clearing of almost all assets and derivatives into Central Counterparties (CCPs). Very little consideration was given at the time to narrow categories of high quality liquid assets required by CCPs for initial margin, and the pro-cyclical liquidity demands CCPs make through additional initial and variation margin calls when markets come under stress.

These factors both became critical in March 2020 when the Covid-19 crisis communicated to financial markets, forcing a sharp re-pricing of assets globally. CCPs responded to the volatility by raising initial margin demands and issuing large variation margin demands reflecting market re-pricing. The liquidity shocks transmitted to asset markets, bringing even the US Treasuries market close to collapse. Central banks were forced to step in as ‘dealer-of-last-resort’ to calm markets with various initiatives including QE4, emergency liquidity support, and roll-back of Basel III capital requirements on securities dealers.

In recent weeks a review of CCP risks, resilience and recovery mechanisms has begun which will determine the structure of CCP risk management going forward. In this webinar Kathleen Tyson will review the crisis response of CCPs and central banks, and the FSB Consultative Document on CCP resilience and recovery (deadline 21 July). Martin Watkins will comment based on his experience of CCP reforms post-crisis. Michael Mainelli will lead the discussion and Q&A.


Kathleen Tyson, chief executive of Granularity, provides consultancy on central bank and CCP risk management, resiliency planning, and systems modernisation. As a former central banker, supervisor, and executive at Cedel (now Clearstream) she contributed to early work on the Principles for Financial Markets Infrastructures. As a consultant she has helped build PFMI compliance into infrastructure development and modernisation for clients globally, and led the way in integrating emerging technologies, including blockchain. She is widely recognised as an industry thought leader on how well-intentioned regulatory reforms can have unwelcome consequences as they skew market structure, market liquidity, risk management, and resolution outcomes.

Martin Watkins is a former practitioner with 25 years’ experience of advising and managing systemically important financial market business. As Chief Executive of Cournswood Group, he provides FMI specific advice on strategy, governance, regulatory change, PFMI compliance and operational resilience. A former member of AtosEuronext executive management and Division Head for Clearing based in Paris, Martin spent the past 7 years advising clients as EMEIA Lead for Exchanges and FMI at EY. He will comment based on his experience of CCP reforms post-crisis.

Monday, 06 July 2020

12:00 - 12:45



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  • KathleenIMG_5994 (2).jpg
    Kathleen Tyson
    Chief Executive
    Granularity Limited
  • Martin watkins.jpg
    Martin Watkins
    Chief Executive
    Cournswood Group
  • michael Mainelli.png
    Professor Michael Mainelli
    Executive Chairman
    Z/Yen Group