In money markets, with the heightened awareness toward financial problems at a bank, concerns over credit risks of financial institutions strengthened once again, and upward pressure on interest rates suddenly mounted toward the end of June.
The significant being the need for Cover 2 requirements both for liquidity and credit risks for systemically important CCPs which are operating in multiple jurisdictions/currencies and which deal in asset classes with “jump to default” risk profile in recognition of the increased risk posed by such CCPs.