Risks
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.