CCP Recovery & Resolution Conference

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How to avoid pro-cyclicality and increased systemic risk in distressed markets ?

The use of central counterparties (CCPs) has increased markedly in recent years. The decision to shift from bilateral to central clearing of standardised over-the-counter derivatives concentrates risks in a couple of CCPs, which has potentially negative effects on the financial sector and the broader economy in the unlikely event that a CCP fails. 

The European Commission’s proposal for a recovery and resolution framework should address these risks, resolving distressed CCPs in an orderly manner without resorting to the use of taxpayers’ money. Two critical elements for the credibility of this framework are the distribution of the losses from the resolved CCP and the coordination of the resolution activities. 

These and other elements of the CCP resolution framework will be debated at the CEPS-ECMI conference on CCP Recovery and Resolution, hosted by ABN AMRO Clearing at its headquarters in Amsterdam . The conference will bring together policymakers, industry representatives and other experts.

Recap report on the CCP R&R Conference

Click here to read the full conference report