Experts highlight concerns about potential failure of CCPs

04/25/2013 | International Financing Review (free content)

Experts at an industry conference in Singapore expressed concern that clearinghouses appear poised as the next "too big to fail" financial institutions. Market participants are concerned that a failing central counterparty could present systemic risk. "We're getting very close to solving too big to fail globally for banks, but I worry that this risk could move to CCPs," said Wilson Ervin of Credit Suisse. "I'm not convinced that we have made CCPs deeply resolvable yet -- we have to do that to address systemic-risk issue in a thorough way."

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