Tag: fashionable

Throughout international pandemics or worldwide healthcare issues, experts usually flip to the stock market to watch how investors and business reply to fears. In reaction to current requests for interoperability between central counterparties of European stock markets, regulators have issued new guidelines to include systemic risk. Our evaluation confirms that the at present utilized cross-CCP danger management model can be a source of contagion, significantly if applied in multilateral frameworks. Whereas regulators’ new guidelines eradicate systemic risk, this comes at the price of an inefficiently overcollateralised clearing system. We discuss additional approaches that comprise systemic threat whereas lowering or eliminating... Read More