• Trade Exposure Of A Clearing Member To A Non - QCCP

    • PRU A4.9.5

      (1) The Protection Buyer relies on the Protection Seller to pay the Credit Event Payment if a Credit Event occurs, and therefore must compute Credit RWAs for the Counterparty Risk involved.
      (2) The Protection Seller is exposed to the Protection Buyer only if there are premium or interest rate-related payments outstanding.