Regulators, clearing members, and their clients also must be engaged in making sure CCPs are safe and effective at managing the risks, interactions, and interdependencies inherent in the clearing process. I will now turn to some key aspects of the regulatory framework for CCPs that will strengthen the financial system and help reduce systemic risk.
This makes the ECB less sensitive to political pressure than in a situation in which it would have to make an explicit choice for unwinding. For instance, one of the key elements of the ECB’s response to the intensification of the sovereign debt crisis was the design of the Longer-Term Refinancing Operations or LTROs.