Isda AGM: CCP ‘Armageddon’ could lead to sovereign default, warns HSBC exec

Single bank default could affect multiple CCPs, leading to crippling default contribution for existing members and a chain of bank failures

Crystal ball with nuclear bomb mushroom cloud inside

Mandatory clearing of over-the-counter derivatives could jeopardise policy-makers' hopes of a no-bailout financial system, according to Gary Dunn, senior manager for regulatory and risk analytics at HSBC.

Speaking at the annual general meeting of the International Swaps and Derivatives Association in Singapore today, Dunn sketched out an "Armageddon scenario" resulting from the fact that the same group of international banks are all members of the majority of central counterparties (CCPs) – so

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Switching CCP – How and why?

As uncertainty surrounding Brexit continues and the impacts of Covid-19-driven market volatility are analysed, it is essential for banks and their end-users to understand their clearing options, and how they can achieve greater capital and cross…

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