Risk Annual Summit: No answers on how to cope with CCP default, says Pearson

Regulators are looking at how financial markets could be proofed against the collapse of a CCP – but there are more questions than answers at the moment, says the EC’s Patrick Pearson

Regulators are worried about the impact a central counterparty (CCP) default would have on financial markets, but detailed proposals are some way off, according to Patrick Pearson, head of the financial markets infrastructure unit at the European Commission (EC).

Speaking at the Risk Annual Summit in London this morning, Pearson said regulators are keenly aware of the damage that could be caused by a CCP default, and are using the example of Hong Kong – where the local clearing house collapsed