Thus, one effective way to make a CCP safer is to make its members safer. In that sense, the post-crisis reforms that have greatly strengthened our largest and most systemically important banking institutions have directly benefitted CCPs and other FMIs.
While requiring bank holding companies and their associated broker-dealers to be better capitalized and hold more liquid assets has unquestionably made them safer, it has also raised their balance sheet costs and thereby created incentives to scale back on less profitable business lines.