With the implementation of EMIR, clearing will become mandatory for many companies, also for non financial companies active in the (energy) commodity markets. The result would be that these companies will be dealing only with one or two Central Counterparties (CCPs). Leaving them exposed to one single entity; the CCP. In other words they are facing a concentration risk, that will materialize when a CCP would default. The big question is what are the odds that a CCP could go bankrupt?

The conclusion is that the probability of a clearing house going bust is very low, due to well-structured and capitalized CCPs. But it certainly is not impossible, and the impact would be devastating to the entire financial system.

Read more in this blog post.