How Do CCPs Manage the Operational Risk of Accepting a Wide Variety of Collateral Assets?

CCPs manage this by establishing strict eligibility criteria, applying conservative valuation methods, and imposing margin haircuts based on the asset's liquidity and volatility. They also set concentration limits on non-cash collateral and maintain robust, automated systems for collateral management, including daily mark-to-market valuation and transfer.

This minimizes the risk of accepting assets that are difficult to liquidate or subject to rapid value decline.