calls, partial tear - up or variation margin gains haircutting. such an assessment is critical in enabling a resolution authority to develop a credible ccp resolution strategy and in informing its decision on whether or not to place a ccp in resolution. a specific challenge in this context is the lack of granular data on central clearing interdependencies due to the strict confidentiality of data on the exposures of individual participants. while cross - ccp supervisory stress testing has proven helpful in gauging the systemic contagion risks arising from central clearing interdependencies, we have only seen a few such coordinated efforts so far. similarly, crisis simulation exercises to test the operational preparedness of authorities for potential stress events have been very limited. more also needs to be done to conceptualise non - default loss scenarios, reliable tools for absorbing the associated losses, and the roles and responsibilities of the various stakeholders. there are far fewer prefunded resources available for non - default losses than for default losses, so the risk of entering into ccp recovery or resolution for non - default related reasons may be higher than for default - related reasons. it is therefore critical to make progress in this area. in this context, we also need to reflect on how to ensure a fair loss allocation. while our choice can be guided by the basic premise that those taking the decisions should also be responsible for any losses, it is not always clear where we should draw this line. for example, the general principle that operational losses should be borne by ccps may not hold in the case of contagion risks emanating from a clearing member that has suffered a cyberattack. in addition, given the small amount of ccp capital, it is uncertain whether comprehensive loss absorption could be ensured in all circumstances. recourse to insurance or voluntary capital injections from parent companies may not be sufficient to ensure a reliable, timely and comprehensive response. in the area of client clearing, we currently see very diverse arrangements for sharing information and involving ccps in the relationships between clearing members and clients. this may result in uncertainties regarding ccps ’ ability to port client positions of a defaulting member in a timely manner, particularly as some clients hold very large directional positions. given the growth of client clearing and the increased degree of client clearing concentration in a few major clearing members, this may expose the financial system to unacceptable risks. joining forces to enhance coordination on risks in central clearing in order to address the problems i

jean - claude trichet : interview with bild am sonntag interview with mr jean - claude trichet, president of the european central bank, in bild am sonntag, conducted by messrs walter mayer and michael backhaus on 27 october 2011, and published on 30 october 2011. * * * mr president, your term of office comes to an end on monday. the euro is in stormy waters and the captain is leaving the ship. how hard is that for you? it has been an immense honour and responsibility to be president of the ecb for the last eight years, and to have been able to maintain price stability since the inception of the euro. the last four years have been a very challenging period for all the staff of this institution. this global crisis has presented all of us – both governments and central banks – with considerable and thoroughly unexpected challenges. in any case, this eight - year mandate, which is not renewable, is an essential feature of the independence of the ecb. in recent weeks and months you ’ ve spoken forcefully about this being the most severe crisis since the second world war. can you now give the all - clear, following the decisions taken by the heads of state or government this week? the global crisis began in the united states, before spreading throughout the industrialised world. the crisis is not over. it has laid bare the weaknesses of advanced economies. we are now seeing the weaknesses of the us and japanese economies – but also, of course, europe ’ s weaknesses. europe ’ s governments have made serious mistakes, such as failing to comply with the stability and growth pact. and they did so despite the fact that the ecb was emphatic in warning them of the importance of complying with the requirements of the pact. in addition, some countries failed to pay sufficient attention to their own competitiveness. the critical issue now is for the rules of the pact to be comprehensively tightened up and implemented. the european council was in full agreement on this point. what would be the worst case scenario were all of the member states ’ precautionary measures to fail? the decisions taken at the summit meeting need to be implemented with great precision and speed. the euro area ’ s heads of state or government have a plan, and national governments and the european commission now have some hard work ahead of them. swift and full implementation of those decisions is now absolutely critical. we will monitor this process very carefully. now is the time for action.