How Does a CCP Replenish Its Guaranty Fund after a Default Event? ⎊ Path

How Does a CCP Replenish Its Guaranty Fund after a Default Event?

After a default event, the CCP will typically replenish its guaranty fund by making "assessment calls" to its non-defaulting clearing members, requiring them to contribute additional funds up to a pre-agreed limit. The CCP may also increase margin requirements or adjust its own capital contribution to restore the fund to its target size.

What Is the Process of “Assessment” or “Replenishment” of the Default Fund?

What Is the Process of “Loss Mutualization” among Non-Defaulting Clearing Members?

How Does the ‘Assessment Power’ Work in the Default Waterfall?

How Do the Incentives of Non-Defaulting Members Change When Their Mutualized Funds Are at Risk?

Explain the ‘Waterfall’ Structure Used by a Clearing House to Absorb Losses

What Are “Assessment Rights” in the Context of Loss Mutualization?

What Is a “Re-Assessment” and When Can a CCP Impose It on Its Members?

How Does the Mutualization of Losses Work within the Default Fund?