INTRODUCTION TO CENTRAL CLEARING

Course Details

Audience: This course introduces you to the operational and legal aspects of central clearing. It suits people in the legal and compliance teams, the operational teams (middle office), front office, as well as the collateral teams who need to understand the way in which central clearing will impact the way OTC derivatives are traded. Agenda: What is central clearing? What products will it apply to? How a CCP protects against counterparty default Benefits and risks of a CCP The structure of a CCP and multilateral netting Initial Margin and Variation Margin for cleared transactions CCP resolution and the default waterfall Client clearing (agency and principal models) Protection and segregation of margin and the different models of segregation (omnibus, segregated and LSOC) Collateral management for clearing Clearing requirements under Dodd Frank, EMIR and FMA Risks, benefits and challenges of central clearing Clearing and netting and ISDA® opinions Porting of trades through a clearing house Outcomes: Delegates will gain detailed insight into how central clearing works from a legal and operational point of view and how it will impact the way in which OTC derivatives are traded.