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

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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

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