Key facts
- Several large global central counterparties (CCPs) reported record or near-record liquidity risk in Q1.
Several major central counterparties (CCPs) globally, including LCH in London and Paris, reported record or near-record levels of liquidity risk in the first quarter. LCH Ltd saw its largest payment obligation rise by 29.7% to €38.1 billion, while LCH SA's increased by 43% to €35 billion.
Record liquidity risk measures at major CCPs indicate heightened potential for financial stress and could signal increased systemic risk within the global financial system.
Several large global central counterparties (CCPs) reported record or near-record measures of liquidity risk in the first quarter, according to analysis by Risk Quantum. LCH, operating CCPs in both London and Paris, set new highs. At LCH Ltd, the hypothetical largest payment obligation increased by 29.7% from the previous quarter to €38.1 billion ($43.7 billion). Simultaneously, LCH SA saw its equivalent measure climb by 43% to €35 billion.
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