CFTC Holds Roundtable Discussion on Recovery and Orderly Wind Down of DCOs (with Delta Strategy Group Summary)

The CFTC held a public discussion on issues related to recovery and orderly wind down of derivatives clearing organizations ("DCOs").

The roundtable discussion was broken into four sessions: (i) variation margin gains haircutting ("VMGH"), (ii) re-establishing a matched book, (iii) wind down, and (iv) liquidity risk management.

A key takeaway included general agreement from participants that VMGH should be used only as a last resort and the governance process should include all stakeholders. Additionally, many participants supported broad participation in auctions after a clearinghouse default.

Click herefor a summary of the roundtable, prepared by Delta Strategy Group.

See: Roundtable Agenda. Related news: CFTC to Host Public Roundtable Discussion on Recovery and Orderly Wind-Down of DCOs (with Lofchie Comment) (February 20, 2015); CFTC Postpones Public Roundtable Discussion on the Recovery and Orderly Wind-down of DCOs (March 5, 2015).