In this respect, a key priority in terms of enhancing the resilience of the CDS markets is the establishment of central counterparty facilities. Such CCPs will help, in particular, to diversify and share risk exposures and their margining procedures will reduce the incentive to take excessive risks. Moreover, CCPs will deliver more of the much needed transparency for all parties involved.
For example, 1–2% of ATM machines in the United States are down at any given moment – some simply because they are out of paper – yet consumers know to go down the block to another machine or into the bank branch or local supermarket to obtain the cash they need.