Products and Benefits

ColonnadeGCSA provides the following:

  • A cost-effective and pre-funded form of alternative collateral for initial margin and guaranty fund contributions to central counterparties
  • A cost-effective form of “skin-in-the-game” for clearinghouses utilizing a prefunded insurance mechanism
  • Alternative liquidity facilities for clearinghouses that can augment or replace credit facilities traditionally provided by banks that may also be clearing members, thus reducing potential wrong-way risk in a crisis
  • Additional loss absorption tools for CCP recovery and resolution plans
  • Additional loss absorption tools for direct clearing member models at CCPs

GCSA’s collection of collateral, liquidity, and risk-transfer products for CCPs is designed to bolster CPMI-IOSCO’s principles for financial market infrastructure. GCSA’s products were also designed to strengthen financial resources in accordance with DCO Core Principles and requirements under EMIR and ESMA standards.

Regulatory Response Letter: Consultative Report on the Recovery of Financial Market Infrastructure – September 23, 2013


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