Discussions regarding the global and EU framework for CCP resolution are still under way, and more work will need to be done to assess the extent to which interoperability can help during a resolution process; however, there are reasons to believe that it could indeed be an asset from the perspective of CCP substitutability 6.
Furthermore, greater netting efficiency – which is one of the effects of CCP interoperability – can lead to financial stability benefits such as lower expected counterparty exposures and lower collateral demand, when compared to a situation in which the clearing landscape would be fragmented 7.