Central Counterparty Clearing: an update on the impact of Basel III capital rules, developments in capital efficiency & risk management and technology

The role that CCPs play in supporting financial markets has been enhanced and expanded following the financial crisis, and a number of additional regulatory features and protections have been built into the system. Following its agreement, there is now greater clarity on Basel III capital rules, and their impact on market participants using CCPs.

This session will provide an overview of the Basel III capital rules and their impact on banks as principals, and bank affiliated clearing members. It will also describe some of the innovations that have been introduced to capital efficiency, risk management and technology (including Fintech), by using the example of the CME Clearing platform.

Some of the key issues that Mr Cutinho will discuss include:

• An overview of Basel III capital rules
• Direction and implications of CME Clearing’s key priorities.
• What innovations have been introduced in terms of:
  - Capital efficiency
  - Risk Management
  - Technology
• Taking stock of the future direction, trends and impact on the market

Sunil Cutinho

Sunil Cutinho is President of CME Clearing, and has been in this role since 2014. He joined the CME Group in 2002, undertaking a wide range of roles, including: Director Enterprise Architecture in the Technology Division. Other senior roles within CME Clearing include: Managing Director, Deputy Head of Clearing and Managing Director, Clearing Operations & Systems. Within CME Clearing, he has developed clearing solutions for listed and OTC derivatives, for both members and clients. 

Cutinho began his career in the technology sector, and over 14 years worked at several companies, including: CNA Insurance, Proxicom, VISA International and GDS.