Analysis of the pros and cons of introducing a central counterparty in the Danish securities market

摘要

The paper describes the activities of central counterparties (CCPs) and the international framework for those activities. It also provides an overview of the activities of the CCPs in the EU. Against this background, an initial assessment is performed of the possibilities of introducing a CCP in the Danish market. The preliminary conclusion is that there seems to be a limited need for a CCP in the Danish market. Furthermore, the initial costs involved seem to be relatively high. However, a more detailed analysis is recommended concerning the expediency of introducing a CCP on the repo market, where higher risks are involved. Here, the introduction of a CCP would also offer administrative or capital-adequacy benefits. After the publication of the paper, one or more meetings will be held with market representatives with a view to discussing the preliminary conclusions to the paper and the assumptions on which they are based.