Central Counterparty Interoperability

Over the past decade, the landscape for financial market infrastructure has undergone considerable change, driven by the combined forces of technological advance, globalisation and regulatory change. National markets are commonly no longer served by a single infrastructure provider at all the stages of the trading process between execution and settlement. Emerging in its place is a more fluid environment in which infrastructure providers are targeting specific stages of the trading process, and increasingly operating across national borders.1 Particularly in Europe, cases are emerging of CCPs competing directly with each other, especially to process trades executed on newly established trading platforms.2 Partly in response, CCPs are expanding their scope and coverage, through