June 6, 2024 (NO COMMENTS)

Member default simulation finds standardisation and porting could help in a crisis, and moots unscheduled repeat drill

In November 2023, CCP Global – the trade body for central counterparties – co-ordinated an international default simulation to see how clearing houses and members could cope with the failure of a major member firm. The fire drill – dubbed CIDS, or CCP international default simulation – was designed to see if the industry could put out a fake blaze on the scale of 2008’s Lehman Brothers conflagration. Its findings were issued in May. During simulated emergency auctions, members bid on the