EC in favour of multiple central counterparties
Multiple central counterparties for clearing derivatives trades might be less efficient, but stability concerns make a single counterparty too risky to allow, a European Commission specialist has said.
Speaking at the Risk Derivatives Summit on June 23, Sebastijan Hrovatin, an EC policy officer, said that while "from a purely economic perspective, one central counterparty makes sense - it would be more efficient in managing collateral and so on" - it would create larger problems than it solved
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