--Rob McGlinchey
Industry officials have warned the European Commission that the appointment of independent administrators to chair and participate in a clearinghouse’s risk committee could limit a CCPs ability to establish a stringent risk policy for clearing over-the-counter derivative contracts.
In a letter, Bank of America Merrill Lynch said independent administrators should therefore not be included in a CCPs risk committee. “Independent administrators have different incentives from clearing members, which may include maximizing fees at the expense of ....