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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