The FSB has conducted a survey on CCP resolution regimes and resolution planning within its membership, and found that many jurisdictions are still in the process of developing resolution regimes. As the reform process moves forward, this will be an important area of focus. All of these efforts are directly aimed at strengthening FMIs.
But the strength and resilience of a CCP ultimately depends on the strength and resilience of its clearing members. I’d now like to shift focus to the relationship between these market utilities and the institutions that use them. Barring an operational event, CCPs only face credit or liquidity risk when one of their members fails to make a payment when due.