This argument is however not consistent with the expectation which underlies current regulatory thinking that social benefits, such as innovation and incentives for sound risk management, will arise from CCPs remaining for-profit entities.
That said, authorities and market participants will need to closely monitor market dynamics and ensure they do not lead to adverse consequences in terms of financial stability, such as a “race to the bottom” over risk management standards. Third, I believe we need to ask ourselves why EU CCPs have not been more active in developing interoperability arrangements.