They need to set themselves sustainable profit targets which do not undermine ethical behaviour. Without a doubt, such financial policies need to be complemented by fundamental economic policy reforms. But I’m certain that sound financial and monetary policy will be a cornerstone of a stable financial system that serves the development of the real economy over the long term. 6.
For instance, some clearing participants may be unable to fulfil all their obligations if multiple CCPs simultaneously ask for emergency cash calls and replenishments. In this context, more thinking on CCP crisis scenarios could give us a somewhat clearer idea of the specific problems CCPs might have to face in a recovery situation, including the potential size of losses and liquidity shortfalls.