Deloitte proposes using Agent-Based Modelling (ABM) to strengthen central counterparty (CCP) risk management frameworks. ABM simulates CCP environments by modeling individual behaviors of clearing members (CMs) and market conditions, enabling assessment of changes in margin calls, default management, and systemic risk. Developed with Simudyne and Cloudera, the model evaluates stressed scenarios and emerging risks such as concentration and wrong-way risk. It supports CCPs, regulators, and financial institutions in analyzing resilience, recovery, and resolution strategies following increased clearing post-2008 and events like the 2018 Nasdaq Clearing AB default.

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