FSB warned not to overfill its planned CCP resolution toolbox

Network contagion could make cash calls systemically risky, but TLAC also controversial

Bank for International Settlements
Bank for International Settlements, Basel, home to the Financial Stability Board
Risk.net montage/Ulrich Roth/Getty

Market participants have expressed concerns about a resolution toolbox for clearing houses proposed by the Financial Stability Board in September, and in particular warned against the idea that cash calls on clearing members could be used for a very wide range of scenarios.

Marnie Rosenberg, managing director and global head of central counterparty (CCP) credit risk and strategy at JP Morgan, said on November 8 that the FSB should ensure the approach to resolution and recovery at CCPs was

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here