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Hill calls for US collaboration to avoid 'devastating' clearing house collapse 

March 5, 2015

Jonathan Williams, Investment & Pensions Europe 

The European Commission must work collaboratively with the US to draw up a resolution framework for central clearing counterparties (CCPs), Jonathan Hill has urged.

The commissioner for financial stability’s recommendation came days before the General Court of the European Union, part of the European Court of Justice, ruled that CCPs clearing euro-denominated trades did not need to be based in a country that was part of the single currency. 

Speaking at a conference in New York, Hill noted that an estimated $570trn (€509trn) in risk being cleared was “centralised in a handful of global CCPs”.

“If one of these were to fail, the consequences could be devastating, and would be felt worldwide,” he said.

Read More: Investment & Pensions Europe

 
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