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I am pleased to be back in Frankfurt to address you today in my capacity as Chair of the CCP
Supervisory Committee (CCP SC).
Since the CCP SC was established in January 2020, we have seen two major crises events in
short succession testing the resilience of our financial system, as well as our regulatory and
supervisory approach to CCPs.
After a longer period of stability, the COVID-19 pandemic and then the Russian invasion of
Ukraine have had major repercussions on financial markets creating strong supply and
demand shocks, fuelled by shortage fears, exacerbating volatility notably in gas and oil
products.
These significant price corrections and volatility increases in turn generated steep margin
changes for clearing participants, and in some instances significant liquidity strains in parts of
the financial system.
From a CCP perspective, the impact so far seems to have been contained: there were no CCP
defaults and only minor member defaults, which were swiftly and effectively managed. At this
stage, we have not identified major weaknesses, although some CCPs are reviewing their
margin models and their list of eligible collateral. In turn, most clearing members seemed to
have been able to cope with the increased liquidity pressures.
However, looking at the broader clearing ecosystem, a number of non-financial clearing
members and clients were in significant distress and in certain cases needed financial
assistance to avoid that the liquidity stress observed would become a solvency crisis and
trigger multiple defaults....
much more at ESMA