Credit rating agency said clearing houses play central risk management role
Rating agency Moody’s
Investors Service has proposed a global rating methodology for
central counterparties (CCPs), citing their key role in risk
management of financial markets.
The body said a new Clearing Counterparty
Rating (CCR) would reflect Moody's view of whether a CCP would
be able to meet its clearing and settlement obligations to its
clearing members, namely the "probability of default," and the
financial loss that would result if a CCP were unable to meet
such obligations, known as the "severity of loss."
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