Agency said clearing houses are key to risk management and should be subjected to the same scrutiny as other firms
Rating agency Moody’s
Investors Services called this week for industry comments on a
potential introduction of a rating over central counterparties
(CCPs) but what has been the response of the market?
Moody’s proposal for the global
CCP rating has been developed due to clearing house's key
role in risk management of financial markets, said the agency
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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