CME, Eurex rebuff calls to compensate members for losses
BlackRock and BNP want CCPs that recover from a default to reimburse members and clients
The chief risk officers of CME Group and Eurex Clearing have both rejected calls for clearing houses to compensate members and clients that incur extreme losses after a default.
Dmitrij Senko, CRO of Eurex Clearing, called the idea “alarming”.
Lee Betsill, CRO of CME Group, said it would “create some perverse incentives” in the event of a default.
Senko and Betsill were speaking at a conference organised by Eurex in Frankfurt on February 27.
If a clearing member defaults, the central
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