In 2009, the G20 leaders agreed that all standardised over-the-counter (OTC) derivatives should be cleared through central counterparties (CCPs). Accordingly, an increasing proportion of OTC derivatives are now centrally cleared, particularly where the trading counterparties are large...

The financial crisis has led to considerable efforts to improve risk management practices in financial markets. One of the main proposals being suggested in international fora is to increase the use of central counterparties. This article discusses the potential for central counterparty...