CCP recovery plans need flexibility, Eurex exec says

05/23/2013 | Risk.net (subscription required)

Thomas Laux, head of risk management at Eurex Clearing, warns that requiring central counterparties to establish explicit recovery plans could be dangerous. "Flexibility is absolutely vital for CCP recovery," Laux said. "It might be very dangerous to have fixed loss-allocation rules defined upfront that may increase systemic risk."

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