20 January 2018
visit www.ebaday.com

ECB hosts meeting on establishing CCP for credit default swaps

03 November 2008  |  1468 views  |  0 Source: European Central Bank

The European Central Bank (ECB) today hosted a meeting with European stakeholders concerning the establishment of central counterparties (CCPs) for credit default swaps.

Participants included the potential providers of such CCPs, their regulators and the main users (dealers and buy-side). The meeting complemented initiatives by the Federal Reserve Bank of New York and the European Commission in this field.

The Eurosystem shares the views of the Financial Stability Forum and of the European Commission on the importance of reducing counterparty risk and of enhancing transparency in OTC derivatives markets, especially in those parts of the market that are of systemic importance (e.g. credit derivatives, including credit default swaps). There are a number of initiatives aiming to achieve these goals through the introduction of centralised clearing solutions for OTC derivatives. The Eurosystem sees the introduction of CCPs for OTC derivatives as an appropriate solution to tackle the aforementioned issues because CCPs, by virtue of concentrating outstanding positions in one place, (i) reduce the counterparty risk to which market participants are exposed; (ii) increase market integrity, transparency and the availability of information; (iii) standardise the criteria for evaluation of exposures; and (iv) free up collateral.

Participants at the meeting underlined the merits of multiple solutions in general and of at least one European solution.

The Eurosystem stands ready, in cooperation with the other authorities, to facilitate the effective collective action of the private sector in this regard.

 

Comments: (0)

Comment on this story (membership required)

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.niceactimize.comvisit www.fivedegrees.nlvisit www.ebaday.com

Top topics

Most viewed Most shared
Europe begins Open Banking era in subdued styleEurope begins Open Banking era in subdued...
12516 views comments | 33 tweets | 38 linkedin
BofA leads on blockchain patentsBofA leads on blockchain patents
7909 views comments | 12 tweets | 12 linkedin
Standard Chartered establishes fintech innovation and investment unitStandard Chartered establishes fintech inn...
7759 views comments | 14 tweets | 14 linkedin
hands typing furiouslyFintech Adoption is About People, Not Tech
6889 views 1 | 6 tweets | 2 linkedin

Featured job

Competitive base + commission + benefits
London, UK

Find your next job