Best Practices

Handbook of Risks

CPMI- IOSCO self-assessment

CPMI-IOSCO Public quantitative disclosure standards for CCP

In order to provide relevant quantitative information to participants, authorities and the general public, Argentina Clearing y Registro discloses quantitative information on a quarterly basis in accordance with the provisions of CPMI-IOSCO.

Credit Risk

Authorized market participants shall meet net worth and guarantee requirements:

Guarantee Requirements

Market participants must contribute Initial Guarantees to the following funds: Clearing Member Guarantee Fund. Clearing Member Default Guarantee Fund: this is a trust set up with contributions from all ALyCs and its purpose is to cover defaults by any market participant.

Market Risk & Position Concentration Limits

Safeguard System

Argentina Clearing maintains a strong safeguards system should a Clearing Member default. This system foresees a sequence for allocating resources until canceling the full defaulted amount. This risk-hedging model was structured as a hybrid form, combining different coverage models (Defaulters pay/Survivors pay).The sequence for the liquidation of collateral in case of default by an ALyC is the following:
  • Collateral deposited in the Third-Party Transactions Guarantee Fund, if appropriate, and in the Clearing Member’s Obligations Guarantee Fund.
  • Collateral deposited in the Clearing Member’s Default Guarantee Fund, pro-rated in proportion to the contributions of each member.
  • Special Guarantee Funds or Insurances set up for this purpose by Argentina Clearing, should there be any.
  • Argentina Clearing Fund pursuant to Sect. 45 of Act no. 26831.
  • Argentina Clearing’s Shareholders’ Equity.
  • Adherent Exchange’s Shareholders’ Equity.