transactions ”, 14 october 2014. bis central bankers ’ speeches step in this direction6. while this is an ambitious project and will take some time, i hope we can propose a way forward at the g20 summit in september. finally, we will need to make substantial progress in understanding and assessing interdependencies between ccps and their participants, across the multiple relationships they have with each other. mapping the complex network of these interlinked exposures is crucial from a macroprudential standpoint. this work is currently being carried out by the fsb, and its success will depend on the full and timely availability of data from all jurisdictions involved in the exercise. the information - sharing framework and the methodology being developed for this analysis is a precondition for future work, such as supervisory stress testing. pooling risk in ccps brings benefits for market participants and generates positive externalities for the broader economy – provided that the propagation of risk is well understood and well regulated. as mark twain once said : “ put all your eggs in the one basket and – watch that basket! ” 7. the macroprudential framework for ccps is about making sure that we ’ re watching that basket. i will now hand over to our panellists. see esma report, “ eu - wide ccp stress test 2015 ”, 29 april 2016. “ behold, the fool saith, ‘ put not all thine eggs in the one basket ’ – which is but a manner of saying, ‘ scatter your money and your attention ’ ; but the wise man saith, ‘ put all your eggs in the one basket and – watch that basket! ’ ”, in twain, m., the tragedy of pudd ’ nhead wilson, chapter 15, 1894. bis central bankers ’ speeches

benoit cœure : towards a macroprudential framework for central counterparties introductory remarks by mr benoit cœure, member of the executive board of the european central bank, at a policy panel discussion on the progress with new macroprudential instruments at the esrb conference on macroprudential margins and haircuts, frankfurt am main, 6 june 2016. * * * ladies and gentlemen, i would like to thank the european systemic risk board ( esrb ) for organising this event and inviting me to chair this panel. i will make a few brief remarks before handing over to our distinguished group of speakers. i do not intend to talk about the development of new macroprudential instruments – i will leave this to our panellists. instead, i will try to set the stage by saying a few words about central counterparties ( ccps ), as they are very much in the spotlight when it comes to debates about the future of macroprudential policy. the strong regulatory push towards central clearing in recent years has clearly helped improve the safety and stability of the financial system. among the many well - known advantages of central clearing are the reduction in counterparty credit risk, and the simplification of the network of exposures through multilateral netting and risk sharing, which also comes with a more efficient use of collateral. default risk, no longer being dispersed thinly across the global financial system1, is better pooled and monitored. at the same time, the drive towards central clearing has made ccps key nodes for propagating risk in the system2. given the central role ccps play in the financial system and the potential effects their risk management can have on the economic cycle, it has become increasingly important to consider ccps not only from a microprudential but also from a macroprudential perspective. therefore, the discussion about macroprudential policy, previously almost exclusively referred to in the context of banks, is now being expanded to include ccps. indeed, the committee on payments and market infrastructures ( cpmi ) and the international organization of securities commissions ( iosco ) already considered some of these aspects when they published in 2012 the principles for financial market infrastructures ( pfmi ) 3, for instance by requiring ccps to adopt stable - through - the - cycle margin practices and collateral haircuts. before turning to the more recent work of the cpmi and iosco in this area, allow me to recall two important general considerations