More reforms needed to tackle CCP risks, warns IMF paper
More central bank services to CCPs would help increase resilience
International efforts to increase the resilience of central counterparties (CCPs) have improved financial stability but still fail to address all the risks, according to a working paper published by the International Monetary Fund (IMF).
Central Counterparties: Addressing their Too Important to Fail Nature by Froukelien Wendt, a senior financial expert at the IMF, identifies four major outstanding risks. Interconnectedness forms the core of the issue.
CCPs have in place a "risk waterfall", which
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