CCP default risks not correlated, CFTC finds

Timothy Massad: stress tests reveal “quite a bit of diversification” in CCP exposures

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Timothy Massad, CFTC chairman: CCPs easily passed the CFTC's stress tests

The failure of one clearing house is unlikely to have a contagion effect that brings down other central counterparties (CCPs), claims the top US derivatives regulator after releasing the results of new stress tests.

"Many people will assume that if one clearing member has trouble, all of them will. And [the stress tests] found quite a bit of diversification," said Commodity Futures Trading Commission (CFTC) chairman Timothy Massad. "No single clearing member had the largest loss in more than six

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