Now is not the time to change the rules on CCP resolution

FSB overstepping brief by putting CCP operators’ equity on the hook in resolution, writes former CFTC chair

fsb-gavel

Earlier this month, the Financial Stability Board published proposed guidance directing national authorities in resolving central counterparty clearing houses (CCPs) in the event of a CCP failure. Specifically, it has called for CCP shareholders to be exclusively responsible for absorbing all losses in a resolution scenario. I believe that is the wrong call, and the wrong time to make it.

As former chairman of the US Commodity Futures Trading Commission, who led the process of refining recovery

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