The Chile Financial Market Commission has opened a consultation on proposed amendments to General Rule No. 258, which sets minimum credit risk and liquidity management requirements for systems that clear and settle financial instruments. The proposal adds specific instructions for bilateral portfolio compression in central counterparty systems. The draft sets out a procedure to extinguish previously accepted clearing orders and replace them with new “carryover orders”, reducing the number of contracts and notional amounts in portfolios while keeping net counterparty portfolio risks and collateral requirements unchanged. It also introduces compression requirements for central counterparties and their participants, including traceability of operations before and after compression. Comments can be submitted via the CMF website’s Regulations Under Consultation section until 1 August 2025.
Chile Financial Market Commission 2025-07-08
Chile Financial Market Commission consults on adding bilateral portfolio compression instructions for central counterparty systems
The Chile Financial Market Commission is consulting on amendments to General Rule No. 258, enhancing credit risk and liquidity management for financial instrument clearing systems. The proposal includes bilateral portfolio compression instructions for central counterparty systems, aiming to reduce contract numbers and notional amounts while maintaining net counterparty risks and collateral requirements. It mandates compression requirements and traceability for central counterparties and participants.