Twin member default would hit up to 23 CCPs
New FSB analysis reveals interdependencies of clearing system
In a study of 26 clearing houses around the world, the Financial Stability Board (FSB) found the default of the top two clearing members at one venue could be accompanied by defaults at up to 23 other clearing houses – arguably the most alarming finding of a new study that reveals both strength and potential fragility in the global clearing system.
In addition to the central counterparties (CCPs)
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