In the report Central Counterparty Default Management Auctions – Issues for Consideration, the Committee on Payments and Market Infrastructures (CPMI) and the Board of the International Organization of Securities Commissions (IOSCO) described issues for further industry work to consider the design and conduct of default management auctions. These issues were structured into three categories of work where the Policy Standing Group of CPMI-IOSCO sought industry action.

After the publication of a joint paper developed by CCP12, the European Association of CCP Clearing Houses (EACH), FIA and ISDA on category 1 issues, which included several terminology and operational issues, the associations, together with the client associations FIA Principal Traders Group and the Managed Funds Association, developed three papers on category 2 issues:

• Joint association paper on client participation;
• CCP12/EACH paper on CCP governance and default management groups;
• FIA/ISDA paper on governance of CCP default management processes and the role of default management groups.

The associations continue to work on the third category, which includes potential nascent and emerging practices (synchronizing default management processes and identification of potential hedges between CCPs).