This structure improves the chances that, in the event of a significant market stress, market functioning will not be threatened by the failure of market infrastructure itself. Of course, the other side of this coin is that adding a central counterparty introduces a single point of failure for the network, making it critical that the central counterparty itself be well managed and well regulated.
Marian Jusko: Approaching the euro Speech by Mr Marian Jusko, Governor of the National Bank of Slovakia, at the Conference "Challenges of EU Accession", Prague, 1 April 2003.