Investment Operations


SWIFT Securities View

2021 was yet another interesting period of time for capital markets and the global economy. According a recently released study by the CCP12 (the Global Association of CCPs), the group observed different trends and the overall economic picture was quite mixed. Two years into the worldwide COVID-19 pandemic, markets were still strongly influenced by it. While unemployment rates remained low and GDP of all major economies was positive, inflation was a significant concern.

2021 was also very volatile for cryptocurrencies and commodities markets, especially in the energy sector. The end of the year was also marked by growing geopolitical tensions in Eastern Europe. Yet, amidst all the uncertainty caused by these tumultuous circumstances, capital markets generally functioned well. CCPs continued to be a safe haven for market participants and to provide robust risk management and transparency to their members. They also contributed to the markets’ smooth transition to the new Risk-Free Rates.

Within this report, CCP12 explores the resilience and success of the CCP model through eight exclusive case studies with the support of their CCP12 members. They also provide an overview of the performance and resiliency of CCPs where key figures and qualitative analysis give the insights into the central clearing model and CCPs’ offerings and developments.

“As presented within the CCP12 AMR, CCPs once again demonstrated their robustness during the unique and volatile events of 2021,” said Kevin R. McClear, Chairman of CCP12. “The risk management models and practices of clearing houses around the world successfully risk managed counterparty credit risk and mitigated systemic risk,” McClear said.

According to Teo Floor, CEO of CCP12, 2021 marked an inflection point in many ways, a shift from the post-COVID-19 recovery to growing concern and stress from the heightened political tensions, trade disruptions, and economic pressures. “In such circumstances, the ongoing operational resilience and reliable risk management delivered by the clearing eco-system is essential to maintaining fair and transparent markets, enabling participants to price and settle those risks they wish or need to exchange,” Floor said.