The experience of financial markets last March may best be described as a ‘dash for cash’ rather than a crisis. In an OMFIF roundtable at the end of January, Christina Segal-Knowles, executive director for financial market infrastructure at the Bank of England, discussed market resilience in the face of stress. Some credit for avoiding a full-blown crisis must go to the broad use of clearing in over-the-counter derivatives markets, mandated since the 2008 financial crisis, which has limited domino effects and the risks of counterparty default. Central clearing counterparties had a hand in this too, through their ... (full story)