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.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: