This may result in uncertainties regarding CCPs’ ability to port client positions of a defaulting member in a timely manner, particularly as some clients hold very large directional positions. Given the growth of client clearing and the increased degree of client clearing concentration in a few major clearing members, this may expose the financial system to unacceptable risks.
This means that a U.S. state cannot be brought into financial difficulties by a mismatch between the size of its banking sector and that of its local economy, whereas a euro area country can – as we saw in Ireland. On the real side of the current account, persistent trade imbalances within the euro area also reflect accumulated competitiveness losses in deficit countries.