Unresolvable clearing houses pose ‘enormous risk’

CCPs, the TLAC and Basel III capital rules are all cause for concern, Minnesota Fed hears

“We have a new too-big-to-fail problem: watch out for those clearing houses,” warns Anat Admati

The concentration of over-the-counter derivatives trades in a handful of central counterparties poses “incredibly dangerous” risks to the global financial system, a leading academic has warned, not least because no resolution regime has been developed to facilitate the orderly wind-down of a clearing house in the event of failure.

“We have a new too-big-to-fail problem: watch out for those clearing houses. There is no insolvency [process] for them at all. I am now involved with the Commodity

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