ECB Opinion on OTC derivatives, central counterparties and trade repositories
19 January 2011
The ECB notes that this reform, in general, will have enormous practical consequences for market participants, particularly with regard to operations, risk management and legal documentation.
The ECB also notes that central banks may offer CCPs a range of facilities, possibly including overnight credit and deposit and settlement services, depending on their statutory tasks and responsibilities. The ECB recognises that central bank facilities are the most effective tool for market infrastructures in view of their liquidity and risk management needs. However, central bank facilities are not designed per se to meet the business needs of market infrastructures, and it remains for the Eurosystem and other central banks to determine for themselves which facilities they wish to offer to CCPs and other market infrastructures, and under what terms.
© ECB - European Central Bank
