Fear of something worse seen as key to CCP recovery

Forcing banks to pick up defaulted trades is “viable option”, says Fed researcher

recovery-sign-shutterstock-216119518

Bank members of a central counterparty (CCP) must fear the arrival of a resolution authority if future attempts to rescue a failing venue are to succeed, a panel of industry experts has argued. That might mean giving the authorities a bigger stick to wield, such as forced allocation – the controversial ability to compel surviving banks to pick up a defaulted firm’s positions.

“We need to think a little bit further about what the resolution authority should do when it comes in,” said Fredrik

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: