FSB warned not to overfill its planned CCP resolution toolbox

Network contagion could make cash calls systemically risky, but TLAC also controversial

Bank for International Settlements
Bank for International Settlements, Basel, home to the Financial Stability Board
Risk.net montage/Ulrich Roth/Getty

Market participants have expressed concerns about a resolution toolbox for clearing houses proposed by the Financial Stability Board in September, and in particular warned against the idea that cash calls on clearing members could be used for a very wide range of scenarios.

Marnie Rosenberg, managing director and global head of central counterparty (CCP) credit risk and strategy at JP Morgan, said on November 8 that the FSB should ensure the approach to resolution and recovery at CCPs was

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