CCPs unlikely to be wiped out by op losses, research suggests
Former LCH risk chief says sharing loss data would help CCPs avoid risk of holding too little capital, or too much
Stakeholders should not worry unduly about central counterparties’ (CCPs) ability to absorb sizeable non-default losses, such as those stemming from cyber attacks and outages, according to a new study from a former CCP risk chief – although a pooled industry loss database would help operators better capitalise against them.
Research by Dennis McLaughlin, who, until early 2021, was LCH’s group
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