To this end, it will be essential that both the final EU and US rules converge to fully reflect the substance of the updated principles for financial market infrastructures, which the Committee on Payment and Settlement Systems and the International Organization of Securities Commissions will release next month.
Let me briefly touch on the further development of financial market infrastructures for OTC derivatives, focusing on the role of central clearing counterparties (CCPs) and trade repositories. The rationale for fostering the use of CCPs is that a CCP reduces systemic risk by acting as counterparty to every trade, applying multilateral netting, and particularly stringent risk management practices.