And the shift of a large number of OTC derivatives transactions to central counterparties (CCPs) elevates demand for safe assets for use in initial margin and guarantee funds. Second, safe assets act as a means of exchange, especially for the non-bank financial system which cannot settle claims with central bank money.
Benoît Cœuré: Unexpected events and the global safety net Remarks by Mr Benoît Cœuré, Member of the Executive Board of the European Central Bank, at the IMF-SNB High-Level Conference on the International Monetary System, Zurich, 8 May 2012. *  *  *  I wish to thank Isabel Vansteenkiste, Roswitha Hutter and Andreas Schönenberger for their contributions to these remarks.