Why CCPs are the new rating agencies – and pose the same risks

A clear alternative?

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At first glance, there is not much to unite credit rating agencies and central counterparties (CCPs). The parallel lies in the privileged position granted to both types of institution by regulators and, if nothing is done about it, the end result could be much the same – a sudden crisis, but one that is triggered by margin calls rather than structured credit downgrades.

Special influence was handed to the agencies from the mid-1970s onwards, as the US Securities and Exchange Commission and other

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