The OTC derivative activity conducted by hedge funds is being moved into a centrally cleared environment. This means that hedge funds will be sensitive to the margin calls of the CCPs that they will have to finance via their prime brokers. Alongside this, collateral optimisation will be a crucial facet of the new environment for hedge funds, since they will need to be able to use their available collateral against their trades in the most cost efficient way possible. Given that each CCP operates differently from the next, the selection of a CCP will have a huge bearing on the costs and margin calls faced by hedge funds.
Thomas Murray Data Services' data for each CCP is structured in a consistent way to enable users to compare one against the other. Whether it is CCP interoperability or the impact of individual segregation on the default fund waterfall, the risk assessment should provide users with a primary source of information.
Our CCP Risk Assessments comprise of the actual risk assessment report, which provides our independent analysis into the risks, margining and default waterfalls of each CCP we monitor, on-going surveillance of each CCP and a transparency index. We cover a global pool of CCPs.