8/20/2013

Under the new regulatory framework, central counterparties have substantially the same powers as rating agencies, and at the same time they have the same weaknesses, write Chris Kenyon and Andrew Green. "As CCPs become more embedded in rules and industry practice, there is a danger the market will become complacent about their role, just as it came to depend on -- and blindly accept -- agencies' AAA ratings," they write.

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