On November 25, 2014, the International Swaps and Derivatives Association (“ISDA”) published the ISDA Principles for CCP Recovery. ISDA considers that clearing houses have become systemically important and that the risk of a clearing house reaching the point of non-viability should be minimized. ISDA’s principles for CCP Recovery cover: (i) transparent risk management standards, practices and methodologies; (ii) mandatory, standardized and transparent stress testing;(iii) skin in the game; (iv) clearly defined CCP recovery plans; and (v) clearing service termination or resolution.

The ISDA principles are available at:

http://www2.isda.org/functional-areas/risk-management/.