Supervisors split over flexibility in CCP resolution

European regulators square off over predictability of spillover losses

Spillover effect
The spillover effect: who should be liable for losses incurred after default of a CCP member?

The level of flexibility regulators would enjoy to deal with spillover losses has emerged as a key battleground as the European Commission hammers out a draft legislative proposal on recovery and resolution for central counterparties (CCPs).

The proposal, which has been heavily delayed and is now due in November, was discussed at a meeting of prudential regulators from all European Union member states on June 27. Two sources with knowledge of the talks say a divide emerged between those who want

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

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 individual account here: