Central counterparties against systemic risk

Central clearing significantly reduces systemic risk and their amplifying factors in financial markets. This is a key finding of the White Paper “How central counterparties strengthen the safety and integrity of financial markets” which was published by Eurex Clearing, the CCP of Deutsche Börse Group. Hence, the regulatory agenda to broaden the use of CCP clearing together with high regulatory requirements makes financial markets more robust and transparent and benefits the wider economy. In particular central clearing reduces risks in bilaterally negotiated products such as OTC derivatives and allows to mitigate systemic risks in these markets.