– The pillars of the global financial system are fundamentally unstable which could lead to a frightening chain-reaction in the next crisis, BIS warns
– Giant “central counterparties” that clear the $540 trillion nexus of derivatives are vulnerable to failure in times of extreme stress
– The Bank for International Settlements said CCPs could cause “a destabilising feedback loop, amplifying stress”
– Recent market ‘jolt’ will be first of many as easy money era ends – world’s top watchdog
by Ambrose Evans-Pritchard via Daily Telegraph
Credit: Bloomberg
The pillars of the global financial system are fundamentally unstable and could lead to a frightening chain-reaction in the next crisis, the world’s top watchdog has warned.
Giant “central counterparties” (CCPs) that clear much of the $540 trillion (£428 trillion) nexus of derivatives are themselves vulnerable to failure in times of extreme stress.
This is a worry looming ever larger as rising US interest rates expose the weak links in global debt markets.
The Bank for International Settlements (BIS) said in its quarterly report that the CCPs could cause “a destabilising feedback loop, amplifying stress.”
Full article on Daily Telegraph
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News and Commentary
Source: Bloomberg
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Gold Prices (LBMA PM)
17 Dec: USD 1,239.10, GBP 982.61 & EUR 1,093.13 per ounce
14 Dec: USD 1,239.15, GBP 983.39 & EUR 1,096.90 per ounce
13 Dec: USD 1,244.45, GBP 982.87 & EUR 1,093.62 per ounce
12 Dec: USD 1,244.75, GBP 993.31 & EUR 1,098.24 per ounce
11 Dec: USD 1,248.25, GBP 988.99 & EUR 1,096.59 per ounce
10 Dec: USD 1,246.80, GBP 980.61 & EUR 1,092.57 per ounce
Silver Prices (LBMA)
17 Dec: USD 14.60, GBP 11.55 & EUR 12.86 per ounce
14 Dec: USD 14.58, GBP 11.61 & EUR 12.92 per ounce
13 Dec: USD 14.68, GBP 11.60 & EUR 12.90 per ounce
12 Dec: USD 14.66, GBP 11.68 & EUR 12.93 per ounce
11 Dec: USD 14.64, GBP 11.62 & EUR 12.85 per ounce
10 Dec: USD 14.53, GBP 11.48 & EUR 12.73 per ounce
