The Chile Financial Market Commission has issued an amendment to General Rule No. 258, updating minimum credit risk and liquidity management requirements for systems that clear and settle financial instruments by adding instructions on bilateral portfolio compression in central counterparty (CCP) systems. The amendment sets out a process to extinguish previously accepted clearing orders and replace them with new “carryover orders”, enabling a reduction in the number of contracts and notional value while keeping net counterparty portfolio risks and collateral requirements unchanged. It also establishes compression requirements for CCPs and their participants, including traceability of operations before and after compression, and is accompanied by a Regulatory Report published by the Commission.
Chile Financial Market Commission 2025-09-03
Chile Financial Market Commission amends CCP risk management rules to introduce bilateral portfolio compression procedures
The Chile Financial Market Commission amended General Rule No. 258 to update credit risk and liquidity management for systems clearing and settling financial instruments. The amendment introduces bilateral portfolio compression in central counterparty systems, reducing contracts and notional value without altering net counterparty risks or collateral needs. It mandates compression requirements and traceability for CCPs and participants, detailed in an accompanying Regulatory Report.