CCP competition poses counterparty risk: CIMB video interview

2012-11-05-asia-risk-hk-interviews-ob-v2-cimb-proof1-17

The proliferation of central counterparties (CCPs) among Asian markets could actually increase the amount of counterparty credit risk in the financial system, a direct reversal of what the move to CCPs is intended to achieve, according to Chu Kok Wei, head of rates, funding and structuring at CIMB. "These are commercial organisations and we are concerned that competition between them will in fact compromise the credit quality of the CCP. At the end of the day the whole idea of CCPs is to remo