In the report “Central counterparty default management auctions – Issues for consideration” (Link), the Committee on Payments and Market Infrastructures (CPMI) and the Board of the International Organization of Securities Commissions (IOSCO), described issues for further industry work to consider the design and conduct of default management auctions. These issues were structured into three categories of work where the Policy Standing Group of CPMI-IOSCO sought industry action.
After the publication of the joint paper, developed by CCP12, EACH, FIA and ISDA (the Associations) on category 1 issues, which included several terminology and operational issues, the mentioned Associations together with the Client Associations, FIA PTG and MFA, developed 3 papers on category 2 issues:
- Joint association paper on Client participation (click to read)
- CCP12 / EACH paper on CCP Governance and Default Management Groups (click to read)
- FIA / ISDA paper on Governance of CCP Default Management Processes and the Role of Default Management Groups
The associations continue to work on the third category, which includes potential nascent and emerging practices (synchronizing default management processes, identification of potential hedges between CCPs).