CCP debate needs to go beyond skin in the game

Discussion needs to move on to how to keep markets functioning in a default


So far the debate on clearing house sustainability has focussed narrowly on how much 'skin in the game' participants must have in order to absorb the impact of the default of one or more clearing members. However, to capture the true risk posed, this discussion must broaden to how these same participants are incentivised to maintain commitment to a clearing house through times of stress. If debate continues solely on how much more capital either a clearing member (CM) or central counterparty (CC

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