How central counterparties strengthen the safety and integrity of financial markets (Eurex Clearing)

July 2014

KEYWORDS: clearing, central clearing, central counterparties, transparency, financial institutions, systemic risk, OTC derivatives, risk management, market risk

Authors:

Deutsche Börse Group and Eurex Clearing

Organizations:
  • Deutsche Börse Group and Eurex Clearing

Summary:

Central clearing significantly reduces systemic risk and their amplifying factors in financial markets. This is a key finding of the White Paper “How central counterparties strengthen the safety and integrity of financial markets” which was published today by Eurex Clearing, the CCP of Deutsche Börse Group. Hence, the regulatory agenda to broaden the use of CCP clearing together with high regulatory requirements makes financial markets more robust and transparent and benefits the wider economy. In particular central clearing reduces risks in bilaterally negotiated products such as OTC derivatives and allows to mitigate systemic risks in these markets.

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