1. Systemic Risk(20') (1) What is the definition of ACoVaR? From the view point of regulators of financial system, What kinds of financial institutions they need to pay more attention to well- control the systemic risk in the figure below?Discuss the reasons. (10) (2) CCP transforms the transaction network structure of derivatives in financial market from bilateral contracts to one central organization that clears all contracts from all clearing members (CMS) participated. What is the advantages and disadvantages of this centralized clearing structure? (10') 1. Systemic Risk(20') (1) What is the definition of ACoVaR? From the view point of regulators of financial system, What kinds of financial institutions they need to pay more attention to well- control the systemic risk in the figure below?Discuss the reasons. (10) (2) CCP transforms the transaction network structure of derivatives in financial market from bilateral contracts to one central organization that clears all contracts from all clearing members (CMS) participated. What is the advantages and disadvantages of this centralized clearing structure? (10')