Author Name: Thomas Book, CEO Eurex Clearing
The lessons from the past and the conclusions for the future
Eurex Clearing recently published its White Paper on the functioning of CCPs and their contribution to reduce systemic risk, given the ongoing discussions on the role of Financial Market Infrastructure as the new regulatory regime takes hold. The main purpose of the paper was to analyse how CCPs serve their markets and the positive impact they have on user's risk management. Of particular interest was the question surrounding CCP market structure resilience for extreme market scenarios, and how CCPs, their members, and regulatory stakeholders will ensure that even in circumstances which overwhelm the existing levels of collateralization, a CCP enables either the recovery or resolution in an orderly manner.