The implementation of post-trading market infrastructure is the leading policy in the OTC Derivatives Market reform. In particular the introduction of Central Counterparties (CCPs) as intermediaries in every OTC derivatives transaction.
Although there are some expected benefits in terms of greater transparency and better risk management, the major concern is how to regulate the CCP's insolvency. Therefore, effective loss-allocation rules are fundamental to ensure the success of the new post-trading infrastructure.
Two illustrative documents discussing the topic:
