Liquidation risk of the clearing client

 

Liquidation risk relates to the possibility that if the CCP transactions and assets linked to them were to be ported from the former clearing client account, there is a risk that any non-cash assets would be liquidated into cash. 

 

If this were to happen, the value given to such assets by the CCP may differ from client expectations for assets' full value.

 

 

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Last Updated on Tuesday, 29 April 2014 20:58
 

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