closing remarks fourth annual joint conference of the deutsche bundesbank, european central bank and federal reserve bank of chicago on ccp risk management 22. 03. 2022 | virtual | burkhard balz 1 introduction 2 challenges for ccps in the face of amid turbulent financial markets 3 farewell 1 introduction ladies and gentlemen, on behalf of the deutsche bundesbank, the european central bank and the federal reserve bank of chicago, i would like to thank you for participating in the fourth joint conference on ccp ( central counterparty ) risk management. a very interesting conference day with lively debates on current and future challenges in ccp ( central counterparty ) risk management is coming to an end. i now have the honour of concluding today ’ s conference. 2 challenges for ccps ( central counterparties ) in the face of amid turbulent financial markets although we can look back on what has certainly been an eventful year for ccps ( central counterparties ), recent developments surrounding russia ’ s invasion of ukraine overshadow everything. who could ever have imagined that we would see another war in europe? for most of us, that was a very distant and absurd idea. while the eu ( european union ), the us ( united states ) and other states are adopting a raft of unprecedented sanctions against russia, the humanitarian crisis in ukraine is taking its course. my thoughts are with the ukrainian people and their immeasurable suffering. and indeed, this crisis comes immediately in the wake of the pandemic, with its risks, challenges and unexpected workload, such as the development of new vaccines within a very short space of time. now geopolitical complexities have gained the upper hand, bringing with them economic consequences. for instance, energy prices, which were already strained, are continuing to rise, producing high volatility in financial markets. in uncertain times, calls for reliability and stability become louder still. robust crisis and risk management appears to be more important than ever – this applies in particular to ccps ( central counterparties ), which play a key role in keeping the financial system safe and steady. for this reason, we also came together today to discuss the right way to handle ccps ( central counterparties ) ’ risk management. recent developments confirm and demonstrate once again the importance of working and standing together. and we should not forget : our current focus on the war should not distract us from another challenge that is already at our doorstep – global heating. with this in mind, allow me to

also the potential risks to financial stability. and when it comes to broadening access to ccps ( central counterparties ) in the market, there are still some obstacles, which need to be eliminated beforehand. although the fee models for ccps ( central counterparties ) have been improved upon, central clearing still seems to be uneconomical for smaller market participants, as ccps ’ participants have to meet very strict risk management requirements. therefore, we should do more to improve the attractiveness of the access models in general. talking about new risks that ccps ( central counterparties ) need to consider going forward, climate change risks have become increasingly important. while climate effects are becoming more and more visible, global efforts to tackle climate change risks are also on the rise. commodity ccps ( central counterparties ) have been primarily affected by recent developments like the spikes in energy prices and market volatility in the context of current tensions between russia and ukraine, which challenged ccps ( central counterparties ) ’ stress test models significantly. despite the high levels of market turmoil, ccps ’ risk models appear to have performed well on the whole. while this is welcome news, ccps ( central counterparties ) need to continuously review their model performance. given the potential impact of climate risks on financial markets and consequently on ccps ( central counterparties ), all ccps need to evaluate how to integrate climate change - related risk adequately into their risk models. by taking climate risks more into account, ccps ( central counterparties ) – in their capacity as intermediaries – could play a role in adequately mitigating the transfer of climate risks to financial markets. the journey has just begun : although a lot has been achieved, there is still a lack of uniform standards applicable worldwide. since climate change is a global issue, local standards and measurements need to be aligned around the world. it is up to governments and regulators to make sure that an assessment of climate risks takes place in an organised manner, and to provide the necessary framework. in order to do so, i see also ample scope for further analytical work. much remains to be done, but i am sure that together, we can shape the future of tomorrow. 3 farewell ladies and gentlemen, colleagues, thank you again for taking part in today ’ s conference and making it such a success. i am convinced that today ’ s conference has delivered what it set out to achieve.