“Just how safe are financial markets today?” asks Christian Lee, a leading expert in clearing, risk, and regulation. It’s a timely question, as the global financial system continues to evolve in the aftermath of the 2008 crisis. Although many safeguards now exist, new systemic risks are emerging, particularly in central clearing.
This white paper explores why Central Counterparties (CCPs) must prioritise robust recovery and resolution planning. It examines how some post-crisis reforms, while designed to enhance stability, may now introduce fresh vulnerabilities.
The Financial Stability Board (FSB) urges CCPs to “maintain momentum and avoid complacency” in strengthening their resolution frameworks. This paper explains why that warning carries weight and outlines the potential consequences if CCPs fail to prepare for future market shocks. It also stresses the importance of transparency, coordination, and rigorous scenario testing to ensure resolution plans are not only documented but also effective under pressure.
Drawing on expert insights and recent regulatory developments, the paper offers a clear view of the current landscape. It also provides practical guidance for firms involved in clearing and risk management, helping them assess their readiness and resilience.
Download this white paper using the form below. If you would like to explore how these insights may apply to your organisation’s risk strategy or clearing operations, please contact us.
