Good morning, thank you very much Nandini Sukumar for the kind invitation to join you today at the World Federation of Exchanges Annual Meeting. As is customary, I note that my contributions today are my own and do not reflect the views of my colleagues or the capable, indefatigable efforts of the Commission Directors or staff.
Twin Peaks
Following the global financial crisis, a period characterized by the onset of the COVID-19 pandemic and geopolitical conflict in Europe, specifically Russia’s invasion of Ukraine, marked an almost unprecedented disruption to markets. In the face of these challenges, our markets demonstrated remarkable resilience.
Post-financial crisis reforms proved effective. Clearing members of central counterparties (CCPs) met rising margin requirements and the markets navigated acute liquidity stresses. As Sir Jon Cunliffe, Deputy Governor of the Bank of England for Financial Stability, remarked, the financial system entered the COVID crisis in a much stronger position with regard to collateral and counterparty credit risk, with, for example, at least $1 trillion in additional collateral against over-the-counter (OTC) derivative exposures.[1] Yet,…
