CCP ‘armageddon’ could lead to sovereign default, warns HSBC executive

Crystal ball with nuclear bomb mushroom cloud inside

Mandatory clearing of over-the-counter derivatives could jeopardise policy-makers' hopes of a no-bail-out financial system, according to Gary Dunn, senior manager for regulatory and risk analytics at HSBC.

Speaking at the annual general meeting of the International Swaps and Derivatives Association in Singapore today, Dunn sketched out an "armageddon scenario" resulting from the fact that the same group of international banks are all members of the majority of central counterparties (CCPs) – so

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