Your colleague Benoit Coeuré said recently that the ECB expects G-20 meeting in March to focus on coordinated response to the growth of digital currencies and urged leaders to come up with a regulatory answer. What are you expectations about this meeting in Buenos Aires? You should not think of a meeting as being a switch.
The Lehmans and AIG episodes demonstrated that network contagion effects can generate damaging externalities, i.e. potential systemic costs of counterparty failure, that are not taken into account in bilateral derivative contracts. In the 1990s similar concerns about foreign exchange settlement risk led to the creation of CLS.