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".
Regulators should focus more on how to resolve hacked clearinghouses, Bank of England official says
8 June 2018 6:56am