UBS: FX CCPs will be “too big to fail”

Evans was speaking at a conference hosted by the Association for Financial Markets in Europe (AFME), to discuss the future of the FX market and impending regulation, in Brussels on January 12. He felt that an FX CCP would bring relatively little systemic benefit, given that CLS adequately resolves settlement risk, but would introduce significant new risks.

“Implicitly, people will believe [an FX CCP] is backed by taxpayer dollars. It could be a complete moral hazard but people will believe that

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