EUROPEAN UNION: Eurex Clearing Publishes White Paper on the Systemic Role of Central Counterparties

Tuesday July 8 2014

Eurex Clearing has published a White Paper on the systemic role of central counterparties. The White Paper first analyses the functioning of a CCP and the effect central clearing has on systemic risk mitigation in financial markets. The second part of the paper outlines the necessary standards and features that need to be met when operating a CCP. The final part of the paper discusses the ways in which the CCP mechanism permits markets to recover, or be wound down if unprecedented market shocks overwhelm the existing safeguards without disrupting the entire financial markets.

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