Regulators should focus more on how to resolve hacked clearinghouses, Bank of England official says

8 June 2018 6:56am
Global authorities need to give greater consideration to how to unwind derivative clearinghouses slammed by cyberattacks, fraud or investment losses rather than focusing mainly on the consequences of a member bank’s default, Bank of England Deputy Governor Jon Cunliffe said.

Cunliffe acknowledged this week that a bank default is indeed “the main vector of risk” for a clearinghouse, also known as a central counterparty (CCP).

“But it is not the only one,” he told bankers at a London conference.* “Operational risk has become a much greater concern for CCP supervisors and regulators in recent years, and we increasingly need to see higher standards of resilience in the face of operational and cyber risk".