Amid a growing clamour for clearing houses to stump up more loss-absorbing capital, the head of JP Morgan's clearing business has suggested central counterparties (CCPs) should allow all their capital to be wiped out before emergency measures impose losses on end-users.

"For all of our customers, we put all of our capital between a default and the clearing house – 100%. It doesn't stop there, though. We are also asked to contribute to the guarantee fund for risks we didn't introduce," said Dave