fundamentally different from banks, whose social function is to transform risk and maturity. In addition, the financial resources included in the CCP recovery waterfall provide for “built-in bail‑in” of their shareholders and clearing members.
Nevertheless, in order to ensure that this is the case and that CCPs can withstand not only tail events but “tail of tail” events involving the default of multiple clearing members, policymakers have in recent years embarked on an ambitious agenda to enhance their robustness.