CCPs limit counterparty credit risk and mitigate information asymmetry within the market. As the CCP guarantees the transaction and defines quality standards for both, participants and the accepted collateral, information about the individual counterparties becomes less important. By acting as an intermediary between the trading partners, the CCP enables them to trade anonymously on these platforms.
But the growth of emerging-market economies represents a tremendous opportunity for Canadian businesses. We need to exploit our comparative advantages and see these rapidly expanding markets as places to do business. So, that's a quick look at some of the trends in and the challenges posed by the global economy.