To ensure that CCPs do not themselves become too-big-to-fail entities, we need transparent, actionable, and effective plans for dealing with financial shocks that do not leave either an explicit or implicit role for the government.
Conclusion: realizing the promise of central clearing A key question posed at this conference is whether the reforms instituted in response to the crisis have improved the strength and stability of the financial system. In my view, the answer for OTC derivatives reform – and central clearing, in particular – is a positive one. But final pronouncements are premature.