Central counterparties (CCPs) have criticised a JP Morgan paper calling for them to hold more capital and create new recapitalisation funds, saying the proposals would be expensive and unnecessary.
The bank's white paper on CCP recovery and resolution procedures, released on September 11, proposed CCPs and clearing members pre-fund an additional recapitalisation fund, which would be held in escrow at a central bank or government agency. If a CCP ran into trouble and burned through all the
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