Is the Default Waterfall Public Information?
Yes, the general structure and components of a CCP's default waterfall are typically public information, as transparency is a regulatory requirement. However, the exact financial figures of individual member contributions or the real-time size of the fund may not be disclosed for commercial and security reasons.
Transparency allows market participants to assess the CCP's resilience.
Glossar
Default Waterfall
Sequence ⎊ This outlines the hierarchical order in which financial resources are applied to absorb losses when a clearing member defaults on its derivative obligations.
Decentralized Derivatives Protocols
Architecture ⎊ Decentralized derivatives protocols represent a fundamental shift in financial contract design, leveraging blockchain technology to eliminate central intermediaries and associated counterparty risk.