The process of clearing old legacy trades that are not subject to mandatory clearing. This may be done so as to preserve netting benefits with newer cleared trades.
The third regulatory standard on bank capital requirements with implementation from 2013. A significant amount of Basel III relates to additional capital requirements for the counterparty risk of OTC derivatives.
Basel Committee on Banking Supervision.
Netting between two counterparties.
Bank for International Settlements.
Chicago Board of Trade.
Central Counterparty (an entity that interposes itself between counterparties to contracts traded in financial markets as the buyer to every seller and seller to every buyer).
A global not-for-profit organisation with the aim of developing clearing and risk management practices.
Counterparty Credit Risk.
Collateralised Debt Obligation.
Credit Derivative Product Company.
Credit default swap (a credit derivative contract covering the risk that a specified credit(s) will default).
Current exposure method.
Commodity and Futures Trading Commission.
A member of a CCP (sometimes referred to as just a member).
The process of clearing via a clearing member by a party not a member of the CCP.
The process of terminating trades with a defaulted counterparty.
Close out netting
The settlement of more than one obligation through a single net payment ...