CCP 12 has identified a broad range of issues they will informally work together to address. These include improved information sharing, enhancement of collateral usage, development of collaborative opportunities and identification of minimum standards for risk management practices.
In January 2001, the first worldwide conference on global clearing was held in the U.K. and involved over 150 industry leaders representing more than 70 of the most important financial services infrastructure organisations and firms from Europe, Asia/Pacific and the Americas. Since then, key representatives of these clearing organisations leading the effort met in Australia to identify objectives and create specific working groups.
Patrice Renault, CEO of Clearnet, was elected chairman of CCP 12 for a one-year period and Walter Reisch, executive vice president of Hong Kong Exchanges and Clearing, was designated vice chairman and will take over as chairman for the second year. The main role of the chairman is to represent CCP 12 in other forums and co-ordinate CCP 12 working groups addressing specific issues.
"We're determined to make sure that the financial services industry infrastructure keeps pace with the growing demands for greater efficiency, risk management and lower cost," said Renault. "We believe that CCP 12 will encourage the industry dialogue needed to bring common standards, promote best practices and achieve interoperability."
"As institutional investors, investment banks and securities firms have become more demanding and global, there is increasing pressure on CCPs. We must respond to our customers' needs to improve efficiency and reduce the risk and cost of clearing," said Reisch.
CCP 12 will hold general plenary sessions of the membership as warranted about once every six months. In the interim, more specific topics will be addressed by specialist working groups, with three groups formed at the most recent meeting to concentrate on issues related to:
- Collateral management - chaired by George Hender of The Options Clearing Corporation
- Linkages - chaired by Peter Axilrod of The Depository Trust & Clearing Corporation
- Risk management and best practice - chaired by Andrew Lamb of London Clearing House
CCP 12 membership includes:
- Australian Stock Exchange Limited (ASX)
- The Brazilian Clearing and Depository Corporation (CBLC), São Paulo
- The Canadian Depository for Securities Limited (CDS), Toronto
- Clearnet, Paris
- The Depository Trust & Clearing Corporation, New York
- Eurex Clearing AG, Frankfurt
- Hong Kong Exchanges and Clearing Limited (HKEx)
- S.D. Indeval, Mexico
- London Clearing House (LCH)
- The Options Clearing Corporation (OCC), Chicago
- Singapore Exchange Limited (SGX)/The Central Depository (Pte) Limited
- Tokyo Stock Exchange (TSE)
- Chicago Mercantile Exchange Inc (CME), which joined in July 2001.
