Skip to main content

Newsroom

April 26, 2013

BoE calls for more clearing house powers

European lawmakers should amend proposed legislation on living wills for banks to include clearing houses, as current laws are too out of date to cope with new requirements, according to the Bank of England.

Paul Tucker, deputy governor of the BoE, said regulators needed the legal powers to allow them to take over clearing houses that are close to liquidation and prevent their collapse from hitting the rest of the market.

To guard against systemic risk, the G20 wants more of the $640tn over-the-counter derivatives market processed through clearing houses, making many privately owned risk management services key financial markets infrastructure. A clearing house stands between two parties in a deal, guaranteeing the trade in the event of a default.”

***

Read full Financial Times article here

In the News
Share

MEDIA REQUESTS

For media inquiries, please contact us at
press@bettermarkets.org or 202-618-6433.

Contact Us

For media inquiries, please contact press@bettermarkets.org or 202-618-6433.

To sign up for our email newsletter, please visit this page.

Name(Required)
This field is for validation purposes and should be left unchanged.

Sign Up — Stay Informed With Our Monthly Newsletter

This field is for validation purposes and should be left unchanged.

For media inquiries,

please contact press@bettermarkets.org or 202-618-6433.

Donate

Help us fight for the public interest in our financial markets, protecting Main Street from Wall Street and avoiding another costly financial collapse and economic crisis, by making a donation today.

Donate Today