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MNI: NY Fed’s Neal Wants Treasury Central Clearing Done Right

(MNI) WASHINGTON

Supervisors and market participants must work together to ensure that changes aimed at boosting Treasury market transparency and resilience, such as central clearing, are implemented in ways that deliver the intended benefits of greater stability, Head of the New York Fed Markets Group Michelle Neal said Wednesday.

“Increased central clearing offers several benefits,” she said in prepared remarks. “For the benefits of central clearing to be realized, however, it is critical that any central counterparty be well supervised and have robust risk management practices. The importance of strong CCP risk management only increases with the volume of transactions that flow through that CCP.”

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Supervisors and market participants must work together to ensure that changes aimed at boosting Treasury market transparency and resilience, such as central clearing, are implemented in ways that deliver the intended benefits of greater stability, Head of the New York Fed Markets Group Michelle Neal said Wednesday.

“Increased central clearing offers several benefits,” she said in prepared remarks. “For the benefits of central clearing to be realized, however, it is critical that any central counterparty be well supervised and have robust risk management practices. The importance of strong CCP risk management only increases with the volume of transactions that flow through that CCP.”

Keep reading...Show less