Wenqian Huang
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Clearing risk in OTC derivatives markets: the CCP-bank nexus (with Umar Faruqui and Elod Takats)
BIS Quarterly Review - December 2018
Media coverage: Financial Times, Reuters

Systemically important banks and central counterparties (CCPs) interact in highly concentrated over-the-counter (OTC) derivatives markets. We outline the CCP-bank nexus to think about the endogenous interactions between banks and CCPs in periods of stress. As these interactions could potentially lead to destabilising feedback loops, the risks of banks and CCPs should be considered jointly, rather than in isolation.

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