In addition to eliminating the overlapping of jurisdictions and to clarifying uncertainties as to application, there is a need for discussion and reconsideration of the principle whereby the protection of competition, which underpins the rules on State aid, always takes precedence over arguments for protecting financial stability.
In the extreme, concentrations could arise by taking back positions if counterparties default;  •  And finally, the ability to collect adequate margin in relation to risk through the cycle (as discussed in the so-called “Corrigan report” produced by the Counterparty Risk Management Policy Group).