JP Morgan CRO: CCPs need extra tail-risk buffers

Bail-in capital would help avoid contagion, says JPMorgan Chase's Ashley Bacon, in an interview with Risk.net

Ashley Bacon 1 web.jpg
Ashley Bacon: "We are relying on the risk management practices set by central counterparties, so we need them to be of the very highest standard"
Alex Towle

The chief risk officer of JPMorgan Chase has called for clearing houses to hold additional resources to cope with tail risks such as a gapping market or a catastrophic cyber event.

In an interview with Risk.net, Ashley Bacon says a stricken central counterparty should be resolved without “unexpected” demands for member firms to stump up extra cash, and argues the concept of bail-in capital could be borrowed from bank regulation.

“We are relying on the risk management practices set by central

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 info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

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