
Historically, central clearing counterparties (“CCPs“) have played a critical role in global financial markets. They have, however, become even more critical in financial markets, with clearing now globally accepted as an effective risk management mechanism. To illustrate, in response to the global financial crisis in 2009, G20 leaders committed to reforming the overall structure of the global financial order and one key initiative was the reform of the derivatives market, with a view to improving transparency and reducing risk. To this end, G20 leaders committed, among other things, that all standardised over-the-counter derivative contracts should be traded on exchanges or electronic trading platforms, where appropriate, and cleared through CCPs (the “G20 Commitments“).