FSB asks whether CCPs could become shock-transmitters

Isda AGM: New analysis – due next month – looks at clearing network risks

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Regulators looking for cases in which clearing system might transmit – rather than absorb – shocks

The risks posed by central clearing to the wider financial system are the subject of new network analysis by the Financial Stability Board, which has produced “very interesting” results, according to FSB secretary-general, Svein Andresen. A summary of the findings is due to be published in June.

Mandatory central clearing of over-the-counter derivatives has led to a big jump in the amount of risk being handled by central counterparties (CCPs), all of which flows through a relatively small numbe