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What Is the ‘Skin in the Game’ Concept for CCPs?

The CCP's commitment of its own capital to cover losses before member contributions, aligning its financial interests with prudent risk management.
Greeks.Live23.11.25

What Is the ‘Skin in the Game’ Concept for CCPs?

'Skin in the game' refers to the CCP's requirement to commit its own capital (often a junior tranche in the default waterfall) to cover losses before non-defaulting members' contributions are called upon. This aligns the CCP's financial interests with its risk management effectiveness, ensuring prudent operation.

How Does a Proposal Deposit Requirement Act as a ‘Skin in the Game’ Mechanism?
What Is the Concept of “Skin in the Game” for a Development Team?
What Is the “Waterfall” Structure of a CCP’s Financial Resources?
How Does the ‘Skin-in-the-Game’ Principle Apply to a CCP?

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