Isda AGM: CCP ‘Armageddon’ could lead to sovereign default, warns HSBC exec
Single bank default could affect multiple CCPs, leading to crippling default contribution for existing members and a chain of bank failures
Mandatory clearing of over-the-counter derivatives could jeopardise policy-makers' hopes of a no-bailout financial system, according to Gary Dunn, senior manager for regulatory and risk analytics at HSBC.
Speaking at the annual general meeting of the International Swaps and Derivatives Association in Singapore today, Dunn sketched out an "Armageddon scenario" resulting from the fact that the same group of international banks are all members of the majority of central counterparties (CCPs) – so
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